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The co-op was started by a small group meeting in the Hill Street living room of Harold Gray, the millionaire idealist who started the Utopian Saline Valley Farms. Their first project, in 1933, was to purchase coal in bulk, thus eliminating the middleman. At the time, coal was a necessity of life, since it was used to heat most homes. Neil Staebler, who with his father, Edward, ran the Staebler and Son Oil Company, was very sympathetic to their cause. (He later became chair of the Michigan Democratic Party and served a term in Congress.) Staebler helped arrange for the co-op to buy coal by the train carload. One of the founding members, William Kemnitz, an attorney who had lost his job at a Detroit bank during the infamous bank holiday, served as the co-op staff person, calling all the members and taking their coal orders by phone. At about the same time, the group also began buying food in bulk.