Indiana was one of the states that took the lead in rural electrification. The REMC Act was adopted in 1935 and provided the legal framework for organizing REMC's. During that same year, President Franklin Roosevelt issued an Executive Order creating the Rural Electrification Administration as part of his emergency relief programs to fight the depression.

President Roosevelt was expecting the private power companies to use the more than $100-million appropriated to build rural electric lines. The private power companies did not accept the challenge.

Consequently, the Rural Electrification Act was adopted by the Congress in 1936 to lend capital to locally owned rural electric cooperatives, such as your REC. Let us emphasize the REA was lending money which was to be repaid with interest. These were not grants. REA, as it turned out, did not become a relief agency, but instead was transformed into a federal lending agency to supply capital to those who wanted to help themselves.

Establishing Dubois REC back in 1939 was a tough job. It meant holding a meeting to explain what could be done, signing up neighbors as members of the co-op, working with engineers and lawyers to set up the REC, obtaining easements from folks, some of whom thought this was a government trick to get their land, and showing people how to wire their homes for electricity.

Some of the men and women who helped organize Dubois REC were: Russell W. Archibald, Rector Callis, Peter L. Friedman, Albert Kaiser, Herschel Rainsforth, Jeanette Rauscher, Albert E. Rudolph, Mary Schlensker, and Alfred E. Wellmeyer.

Seven Cooperative Principles

Why Cooperatives Are Special

Cooperative businesses are special because they are owned by the consumers they serve and because they are guided by a set of seven principles that reflect the best interests of those consumers. All cooperative businesses adhere to these seven guiding principles:

Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Democratic Member Control - Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. The elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.

Members' Economic Participation - Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribe as a condition of membership.

Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

Autonomy and Independence - Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and main cooperative autonomy.

Education, Training, and Information - Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of cooperatives. They inform the general public, particularly young people and opinion leaders, about the nature and benefits of cooperation.

Cooperation Among Cooperatives - Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.

Concern for Community - While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members