During his early visits to Labrador Grenfell became convinced that the chief cause of poverty among the fishermen and their families was the infamous credit system that was the basis of the fishery of Newfoundland and Labrador. In the spring the fishermen obtained supplies on credit from the local merchant. At the end of the fishing season the salted and dried cod fish was turned over to the merchant to settle the debt. The fishermen received any balance in the form of food and supplies for the winter.

Red Bay ca. 1912. James J. Waygood. The Rooms Provincial Archives A 108-117.

Red Bay ca. 1901 – Holloway. The Rooms Provincial Archives E 45-60.

Red Bay 1934. J.H. Donaldson. The Rooms Provincial Archives IGA 25-137.

In the event that the catch was not enough to cover the debt, those winter supplies were advanced on credit, applied to the existing debt and carried over to the next year. This system created an endless cycle of debt from which the fishermen rarely escaped. The concept of co-operatives had proven successful in the north of England, and Grenfell had spent some time there learning how the system worked. He was convinced that this was the solution to the problems caused by the credit system in Labrador.

The fishermen of Red Bay experienced a particularly bad year in 1895. According to Grenfell, they were very discouraged by their poor catch when he arrived in the community late that summer; they felt that they could no longer survive in the Labrador coast.

Grenfell saw this as an opportunity, and explained the co-operative system and how it worked to William Y. Pike, one of the few fishermen in Red Bay who could read and write. He left Pike to convince his fellow fishermen to pool their resources and form a co-operative, an organization that would allow them to profit from their own labour.

William Y Pike, Manager of the Red Bay Cooperative Society. CHE Collection, CHE-ID #663.

Cover of the Red Bay Cooperative Society Minute Book. CHE Collection, CHE-ID #660.

First page of the Red Bay Cooperative Society Minute Book. CHE Collection, CHE-ID #660.

List of members, Red Bay Cooperative Society Minute Book. CHE Collection, CHE-ID #660.

When Grenfell returned later that fall he was disappointed to find that the fishermen were not interested in his idea. Few of them had enough money to invest, and a general fear of the local merchant made them all hesitant to start such a venture. Over that winter Pike continued his efforts to convince his neighbours that a co-operative was what they needed.

By the time that Grenfell returned to Red Bay in August of 1896 he found that the fishery had been better that summer and the fishermen had saved every last penny to invest in what became known as the "Copper Store." A meeting was held and by the end of it the Red Bay Co-operative Society had come into existence with an investment capital of $85.00 — the co-operative movement of Newfoundland and Labrador was born in a fish store in Red Bay in August 1896.

Several skippers came aboard. 1894. Men of Red Bay taken on board Mission ship, probably the Albert. These are the men who formed the Red Bay Cooperative Society. The Rooms Provincial Archives IGA 25-135.

Coloured lantern slide made from original photograph taken in 1896. The founding members of the Red Bay Cooperative Society, 1896. Grenfell at centre, rear. The Rooms Provincial Archives IGA 1-317.

Group of men and one woman on wharf in front of store. 1906-1910. “Red Bay Co-operators” written in corner - looks like Grenfell’s handwriting. The Rooms Provincial Archives VA 118-124-4.

The society operated out of a fisherman's shed for several years, and by the early 1900s it was able to construct its own building. The Red Bay Co-op was able to sell fish and get supplies for its members at fair prices. Pleased with the success of the Co-operative venture at Red Bay, Grenfell urged other communities in the region to follow this example.

Original Flag of the Red Bay Co-operative Society. Conserved by the Canadian Conservation Institute, photo by C. Robbins.

Men on steps of the Red Bay Cooperative Store, ca. 1908. Identified l-r: Bob Howell; [Yetman?]; W.Y. Pike, store manager; Ephraim Yetman; Will March Pike; Tom Pike; Fred Ash; and Richard Canning, a settler. The Rooms Provincial Archives VA 118-58-2.

Red Bay 1939. Gustav Anderson. The Rooms Provincial Archives VA 14-280.

Before 1920 nine more co-ops were up and running in northern Newfoundland and the coast of Labrador, including those at St. Anthony, Cape St. Charles, Battle Harbour, Flower's Cove and West St. Modeste. World War I brought about an increased demand for fish in Europe and prosperity to the fishermen of the region. However, the price of fish declined sharply following the war, bringing an end to the short-lived prosperity. In Red Bay though, the co-op helped the community to survive those hard years in the fishery and the years of the Great Depression. Of the co-operatives that Grenfell helped establish, only those at Red Bay and St. Anthony survived.

The Red Bay Co-op continued to operate until the early 1940s, when it evolved into a private business that continued to operate for another 50 years.