468 ANNUAL REPORT OF THE Off. Doc. 



Organizatiou and Business Methods. 



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The objects of co-operation as stated in the by-laws and con- 

 stitutions of associations are simply to prevent unnecessary com- 

 petition in marketing among local growers and associations; to 

 promote harmony among them; to provide for a uniform system of 

 packing and shipping; to secure all possible advantages in the mar- 

 keting of fruit; as well as to build up a high standard of excellence, 

 and to create a demand for the same; the diffusion of knowledge 

 in all lines of horticulture; to provide ways and means for the 

 growers of fruit and other products to secure by co-operation among 

 themselves and with railroads and express companies, and by all 

 other lawful and legitimate means the cheapest and best transporta- 

 tion services for their fruits and other farm products and the proper 

 distribution, marketing and sale of the same. 



In some cases besides these usual objects of co-operation, pro- 

 vision is made for buying and selling products for profit; planting 

 orchards, manufacturing, buying and selling all kinds of fruit- 

 growers supplies; shipping and transporting fruits, for profit and 

 on commission; in short to carry on a wholesale and retail shipping 

 business as any firm or corporation would. This kind of organiza- 

 tion, while it is still co-operative and still results in direct benefit 

 to the grower, is not the true tj'pe of the co-operation movement, but 

 borders more nearly on the mutual stock company. Of course the 

 stockholders are the chief benefitors. Nevertheless, somewhat of 

 this plan must often be followed to secure the greatest benefit to 

 the members of the organization. To purchase and handle all grow- 

 ers supplies, as spraying material, barrels, etc., is certainly legiti- 

 mate co-operation. Then too, it often becomes necessary in order 

 to give men steady employment, or to make larger and hence cheaper 

 shipments to any given point, to buy some outside fruit. Besides 

 this little speculation often pays the expense of handling the whole 

 shipment. Still the primary and simplest form of co-operation is 

 among growers only and for the selling, packing and shipping of 

 their own fruit. The foregoing simply shows the many modifica- 

 tions which arise and which sometimes so change the original plan 

 that we hardly recognize it. 



The general plan of organization seems to be to elect from five 

 to fifteen trustees, who elect or appoint all officers of the association. 

 When the association is general and composed of other associa- 

 tions, these trustees or directors are elected by delegates from the 

 sub-associations. When the association is composed directly of 

 growers they are elected directly by a majority vote. Officers, 

 usually elected or appointed by the trustees, are as a rule simply 

 president, vice president, secretary, treasurer and manager. 



All property is held by stockholders who receive dividends on 

 stock held, if any accrue from charges for selling and profit on 

 handling in addition to the advantages received by every member 

 of the association in marketing his fruit. This plan simply insures 

 the men who put up the money for the business, an ordinary rate of 

 interest on their money. Each member is charged a rate of so much 

 per package, or a percentage of gross sales, and this charge is made 

 just enough to cover expenses. 



