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S.P.E.W. was founded in 1994 by the Hogwarts School of Witchcraft and Wizardry Sturdent, Hermione Jean Granger. Granger was appaled by the treatment of the House-elves she had encountered. Her first encounter with an elf was with the elf named Winky, back when she worked for Bartimus Crouch Sr. Winky had been forced to sit in the highest seats at the Quidditch Wrold cup between Bulgaria and Ireland. Winky, being afraid of heights, sat there terrified.
Granger had also heard about the elf, Dobby, from her good friend, Harry James Potter. Dobby had been the elf of the Malfoy family, and was perhaps the only elf to not enjoy his servitude. Dobby had been extatic when Potter had trick Lucius Malfoy into freeing the elf. This, put along with the idea of wizards enslaving an entire race of creatures, lead Granger to form the great Society for the Protection of Elvish Welfare.
The beginings of S.P.E.W. were rough, with hardly any response. There were only three members, Granger, Potter, and their friend Weatherby. They had made the iconic badges still in use today, and started the drafts of the pamphlets we are all so familiar with today. Back then, membership only costed two Sickles. Today, memebership costs three Galleons. This is to cover the production costs of the badges and pamphlets, as well as lobbying for stricter laws surrounding the wizard-elvish master-slave relations.
Granger has been the top voice in these concerns for years, and still has yet to get the Department of Magical Creatures to even read her 1,742 page bill. However, side pursuits have been more successfull.