Filene’s Department Store operation is turned over to Edward Filene and Lincoln Filene.

The sons of the founder establish the first employees’ credit union in the U.S., give employees a 40-hour work week, paid vacations, and a role in setting wages and arbitrating labor disputes. They set up a store health clinic and library, establish profit sharing and pensions plans for workers and promote consumer cooperatives. Lincoln Filene subsequently explains, “If we were to create contentment in front of the counter, we had first to create contentment behind it.” The brothers are subsequently ousted after trying to turn the company it into an employees’ cooperative.