Fishermen’s Co-ops

by Sandra Dinsmore

Co-ops go back a long, long way in this country, back to medieval Europe, for that matter, and agricultural co-ops appear to have been earlier than those related to the fisheries.* The first recognized cooperative business in the U.S. was a mutual fire insurance company, founded in 1752 by Benjamin Franklin, which continues to operate today. According to the Oregon Historical Society, a disastrous fishermen’s strike in 1896 led salmon gillnet fishermen in Astoria to form the Union Fishermen's Co-operative Packing Company.

But the Union Fishermen’s co-op might not have been the first U.S. fisheries co-operative because, according to research done by Barbara Sladek of the Records Unit in the Office of the Connecticut Secretary of the State, “Prior to the enactment in 1875 and 1923 of specific laws allowing for incorporation of cooperative associations and cooperative marketing associations respectively, cooperatives [in Connecticut] could be chartered by a special act of the Connecticut legislature, and those records might not be searched by corporation type.” She noted that voluntary associations, which do not file with the Secretary of the State, and also regular stock or non-stock corporations, which are not indexed as co-ops on the Secretary’s records, might also form co-ops. “Therefore,” she stated, “a complete list of fishermen’s co-ops in Connecticut cannot be gleaned from the records of the office.” This may also be true for co-ops in other states and other countries.

Maine has 19 active fishermen’s or lobstermen’s co-operatives to Nova Scotia’s 16. New Hampshire has but a single one, Massachusetts has two, as does Connecticut. Rhode Island has the Point Club, an insurance co-operative made up of a group of insured commercial fishermen who were members of the now defunct Point Judith Fishermen’s Co-op. New York no longer has a fishermen’s co-op though it does have The New Fulton Fish Market at Hunt's Point Co-operative, a co-op made up of 37 commercial fish dealers. New Jersey has two fishermen’s co-ops.

Each co-op has something that sets it apart from another. Several fishermen’s co-ops in the Atlantic seaboard states and in Atlantic Canada have dramatic stories that will be told in the December and January issues.

Maine’s oldest fishermen’s co-op, the Pemaquid Fishermen's Cooperative Assn., filed as a corporation on June 9, 1947. A small co-op, it has only 13 members, but it also has a restaurant and a railway system for boat haul-outs. A boat comes in on the tide; the railway is put in the water and set to the boat, which is then hauled out on land. It is then repaired and returned to the water.

Wayne Dighton, has been at the co-op for 20 years, ten years as co-op manager. A prospective member must fish there for three years before becoming eligible. Membership is $10 per share, with one share per person. There is no provision for children. There are more inactive than active members and there are still some shareholders who don’t fish, and some who hold stock but who fish other places. The co-op does not pay a dividend. Besides buying lobster, it also buys clams and other shellfish. It has a year-round crew and summer restaurant crew of 7 or 8.

The Stonington Lobster Cooperative filed May 10, 1948, which makes it the second oldest in the state, and its 105 or 106 active members make it the largest. Jason McDonald is president of the Board of Directors, Ronald Trundy is the manager.

Co-op member Dick Bridges recalls, “I was only five years old. I can just barely remember it. My father and uncle and half a dozen other co-op members built the co-op; and Father always told me, ‘In time, it'll pay back.’ And it has paid back,” Bridges said. He thought for a moment, and then said, “What I like about it the most? I know that it's mine.” He said all the members feel that way, too. The co-op used to have 300 to 400 members, but that included sternmen, and Bridges said some fishermen at times had three or four sternmen, so membership got out of proportion. He thinks the Stonington co-op may be the largest fishermen’s co-op in the country. He added, “I think if there were more co-ops so we could get together, or we might need a push of some kind in the legislature, then that would be a good thing, too.”

Four fishermen’s or lobstermen’s co-ops: the Bremen, Fishermen’s Heritage, (in Friendship), the Friendship, and the South Bristol all own wharves or other property and have developed realty co-ops. Tim Alley, president of the South Bristol Fishermen’s Co-op explained how his co-op makes owning two wharves work. First, he said, “Whether you’re a member or not, when we pay what we call a patronage dividend or bonus, based on the amount of profit made over the course of the year, if you fished for us or sold lobsters to us, you get paid. You don't have to be a member to get that dividend. Membership,” he said, “gives you other privileges.” He explained that the co-op owns 280 feet of shore frontage on which are two wharves. Each has spaces from 12 to 20 feet wide and of varying length, following the contour of the shoreline. One is approximately 40 feet long. One has space for two fishermen, the other has space for seven. Alley’s space, for instance, at 20 feet wide, has enough room for him to put 400 traps. He explained, “The spaces on the docks are built and maintained by the fishermen, and each member pays a rental fee for the use of the dock. When a fisherman retires, that space goes into a lottery, and another fisherman becomes eligible to use that space to put his traps on.” Each fisherman pays a per-foot rental fee to the co-op to help offset property taxes.

One other advantage of the South Bristol Fishermen's Co-op is that is has the South Bristol Realty Co-op, which owns the co-op's property and facilities. The fishermen's co-op pays a lease fee for the use of those facilities. Once fishermen become eligible to become a Fishermen’s co-op member, they become eligible to become a Realty co-op member. Members of the Realty Co-op receive a separate dividend over and above the lobster poundage dividend. The Realty Co-op is rolled over every ten years, so every ten years South Bristol Fishermen’s co-op members become eligible to become members of the South Bristol Realty Co-op. “This is our way of keeping it so that the young guys have an ownership in it every ten years,” Alley said. “So as older guys retire, this enables younger guys to come up and have ownership in the property so it doesn't end up in the hands of two or three individuals. By not setting co-ops up this way some co-ops, as people retire and stocks get sold off, end up with two or three or four guys owning the facility, and we didn't want that to happen. It wouldn't be a co-op any more.”

The third oldest co-op, the Quahog Lobstermen’s Co-op, Inc., of South Harpswell, filed March 24, 1958. But according to manager Bob Waddle, the Quahog dissolved itself as a co-op in the 1960s, though it continues to this day with some fewer fishermen and with Waddle continuing on, as he put it, “as the boss.” This group failed as a co-op from having “too many chiefs,” Waddle said.

But other Maine fisheries co-ops are flourishing. Two, the Bremen Lobster Pound Co-op and the Fishermen’s Heritage Lobster Co-op. received Working Waterfront grants (Bremen in 2008 and Heritage in 2009), which helped them build bait freezer-coolers, make necessary repairs to their wharves, and the Heritage built cooking and processing facilities.

*FMI: http://www.uwcc.wisc.edu/ and click on History under “What is a Co-op”.

MAINE'S 19 CO-OPS, as of 2011

Beals-Jonesport Co-Op, Inc.

497-2020

Opened Sept. 1, 1970, in good standing

approximately 70 participating members, over 100 on the books

Steve Peabody, Manager for 31 years

The board votes applicants in as a member

The membership fee is $100, for which a member receives 10 shares

There is no limit on membership

Can sell part of catch to other buyers, "but we prefer they not," Said Peabody.

Children's fee is $10 for one share

When fisherman turn 18, he or she can buy nine more shares to become a member

Jonesport has well-defined harbor where manager can see half to two-thirds of boats

 

Bremen Lobster Pound Co-op

529-6455

Filed 5/11/95, in good standing

Bremen Lobster Realty Co-op (one) Good standing, filed 4/08-1997

Bremen Lobster Realty Co-op II good standing filed 7/13/2007

Lobster pound founded in 1938. Three families own the co-op

A 2008 Working waterfront grant paid for a bait freezer-cooler, processing facility, repairs and a cooking facility

Could not reach for verification

 

Corea Lobster Cooperative, Inc

963-7936

Filed 10/01/1970

Dwight Rodgers, Manager

Membership limited to 45 members

Must fish for one year and be voted on at annual membership meeting

Must fish out of Corea

No category for children, but kids can become members with voting rights

Well-defined harbor where manager can see all its boats

 

Cranberry Isles Fishermen's Co-op

244-5438

Filed 4/11/78, in good standing

Marc Nighman, manager for 13 yrs.

22 members and 2 junior members

Members must have their own boat and a full-time commercial fishing license

Another member must sponsor prospective member, then when a vote taken (at a board or members meeting), two-thirds present must vote to admit

Membership fee is a one-time fee of $1,000

Member does not have to live on the islands

There is no limit on membership

There is no waiting period to join

The same rules apply for the junior membership category

except must have students license, there are no voting rights for juniors,

and there is no dividend (it's something to work toward)

 

Fishermen's Heritage Lobster Co-op

832-6378

Friendship filed 8/18/98, good standing

Steve Thompson, manager and two helpers;

Gilbert Simmons, president of the Board of Directors

Founded with 15 members who made a good working group. It now has 37 boats The realty co-op has 15 members who control a small parcel of waterfront with a wharf, and a 2009 Working Waterfront grant paid for a new bait freezer-cooler, repairing part of the wharf, and new fuel tanks. Full range of members from 20s to 70s and Simmons's father who's 87.

Fishermen's Heritage Lobster Realty Co-op II filed 10/21/2010, good standing

Fishermen's Heritage Lobster Realty Co-op , filed 8/18/98 merged

Fishermen's Realty Co-op IV, good standing, filed 3/23/2011

Fisherman's Realty Co-op III, filed 1/13/98 merged

Fisherman's Realty Co-op II filed 1/13/98 merged

 

Friendship Lobster Co-op

832-4435

Good standing filed 4/23/97

Craig Mott, manager, James Wotton, president of the Board of Directors

26 members own a house, small parcel of land, and a wharf.

Friendship Lobster Realty Co-op good standing filed, 4/23/97

8 members of co-op own the realty co-op

 

Georgetown Fishermen's Cooperative

371-2950

Filed 2/04/92 good standing

Could not be reached for verification

 

Interstate Lobster Co-operative

South Harpswell
833-5516

Founded 1974

Its 9 members own the property, which includes a wharf

Rick Moody, President

Ed Reynolds, manager, elected by members

Membership expensive because of owning property

30 or more boats sell to co-op

 

New Harbor Fisherman's Cooperative, Inc.

New Harbor
677-2791

Linda Vannah, manager

Brian Sawyer, president

24 members. To become a member, your name must be brought to the board of director's and voted on at a director's meeting.

You must fish for a year before you can join, but you will be paid a bonus at the end of that year.

Membership fee is $100 or $200; there are two entities

There is no limit on membership

There is no provision for children

It's a very small area, and parking is tight

 

North End Lobster Co-op

882-9797

Founded 7/09/2002 Westport Island

13 fishermen founded the co-op because they had to steam their catches to Boothbay Harbor, three hours out of their day. Now has about 21 active members.

Jason Faulkingham, president; Jody Haggett, vice-president; Tim Chadwick, dock manager; Erin Haggett, bookkeeper

Entry fee: $200

Must be licensed lobsterman and approved by members

Junior members must have student licenses

Some fishermen who are not members can sell to the co-op

TraveLift gives members the ability to haul and store boats.

Jody Haggett said, "We're at the end of a river. Opportunities for fishermen to have access to the water are becoming less and less, which is partly why we founded it." But he gives all credit to founders Dana Faulkingham and Scott Griffiin.

 

The Pemaquid Fishermen's Cooperative Assn.

677-2801

Filed as corp. June 9, 1947, in good standing

Oldest Maine co-op 13 members

Wayne Dighton, manager 10 years; he's been there for 20 years

You must fish for three years before you become eligible

Membership is $10 per share, one share per person

No provision for children

More inactive than active members. Some shareholders do not fish and some shareholders hold stock, but fish other places

Doesn't pay dividend.

Also buys clams and other shellfish, has summer restaurant

Year-round crew plus summer restaurant has crew of 7 or 8

Has unique railway-system boat haul-off. Boats come in on tide, member puts railway in water, sets to boat, hauls out on land, fixes boat, returns boat to water.

 

Pine Point Fishermen's Co-op

883-3588

Scarborough, good standing filed 9/13/76

Tim Staples, president and manager

About 15 full-time members

Have to be elected

Lobster only

Information on membership and stock not public information

No provision for children

No dividend

Restaurant and year-round crew

 

Port Clyde Fishermen's Cooperative

372-8922

Founded 12/12/1972

Could not be reached for information

South Bristol Fishermen's Co-op 644-8224 good standing filed 8/14/72

South Bristol Realty Co-op

Sonny Leeman, manager; Tim Alley, president (563-1742 home #) was junior member in 1972, but co-op no longer has provision for children

$100 membership fee

Fishing members: close to 30, overall members: 35 plus 20 to 25 part-time fishermen.

Must fish for the co-op for two years before can submit name to Board of Directors

Pays patronage dividend (bonus) paid based on amount of profit made over the year to those who fished for or sold to co-op.

Membership gives privileges such as discounts on special order supplies.

Wharf owned by co-op has individual spaces built and maintained by fisherman member. Alley's space is 20 feet wide. He is able to put 400 traps in his space. There are 9 spaces. The spaces or docks are all tied together. One dock has seven spaces and other has two.

 

Spruce Head Fishermen's Co-op

594-7980

Good standing filed 10/11/1972

David Sleeper, Manager

± 60 boats

Leases buying station next door to Atwood's

Membership costs $200

Although membership is closed technically, if a big producing fisherman applies, membership will open for him, and then close again

Must be 18 before can join, but members' children get a bonus. If not a member's child, but sell to the co-op, you don't get a bonus. 2 million lbs per year. No kids.

Could not be reached for verification

 

Stonington Lobster Cooperative

367-2286

Filed as a corp. May 10, 1948,

in good standing. 105 active members,

Ronnie Trundy, manager,

Barbara Eaton, bookkeeper

To be come a member you buy one share of stock at $10/share

You are eligible for dividends at end of year

Some restrictions apply: you need two shares to vote.

Directors vote to allow you to become a member

To have a vote at annual meeting, you must be approved again and pay another $10

There are three different types of shares: voting, non-voting, and preferred. Preferred shares are a different class of stock: a holdover from starting the co-op. If you made an investment, that second share is your voting share

Former president Frank Gotwals said, "The co-op seeks to market its lobsters at the highest margin without incurring undue risk" He noted that the manager "runs an eight to ten million dollar a year business," and added, "the last couple of years have been unusually productive for us. This has made the management of the co-op challenging."

 

Swans Island Fishermen's Cooperative

526-4327

Founded 11/15/1972

Kathy Clark, manager Kenneth LeMoine, president of Board of Directors

±30 members and up to 40 in summer

Must fish for a year, then voted upon

No membership limit

You cannot become a member until age 18, however, you can fish and sell to the co-op, and get bonus, but cannot vote.

Co-op has a lobster pound

 

Vinalhaven Fishermen's Co-op

863-9982

Filed 10/17/74, in good standing

Carol Hamilton, manager, Douglas Littlefield, president of Board of Directors

Mark McCarthy, vice-pres of Board of Directors

60 boats 84 members plus others and 9-member board,

$200 fee to become a full-time member and be voted in by board

No limit on membership, but one member must give up membership to allow a new person to become a member. "We don't think we could do a good job servicing more boats then 60." Said founding member Walter Day.

Pays a bonus to anyone who sells them lobster, member or not; pays best bonus

Junior membership is $10

Can join as adult at age 18

Well-defined harbor where manager can see all the boats

 

Winter Harbor Co-op

963-5857

27 boats, 31 members includes juniors

Randy Johnson, mgr. Michael Sargent, president

Has refrigerated tank room and web site from which can ship lobsters

Membership costs $400 + stock $10 a common stock

Must fish one year after membership before can obtain bonus

Membership voted upon at director's meeting

Must fish out of Winter Harbor

Must own your own boat and have a commercial fishing license

May join with junior student license, but cannot vote until age 18