148 STATE HORTICULTURAL SOCIETY. 



tern in which each association has its own independent selling arrange- 

 ments. ^ ^ ^\ 



Although each association may do its best to maintain the market, it 

 is apparent that all are at the mercy, more or less, of the weakest 

 agency and when one is forced to lower quotations, the other must fol- 

 low. Some opposition to the arrangements may be expected on account 

 of the consequent embarrassment to those agencies whicli are compelled 

 to lead in price cutting. Friendly relations and a common interest, how- 

 ever, are sure to be of much benefit to the whole belt, especially in show- 

 ing clearly the interdependence of the local organizations and necessity 

 for more centralized control. 



It is the firm conviction of the writer that the great need of the grape 

 belt is more efficient organization and that this increased efficiency must 

 come from two movements, seemingly in opposite directions. One look- 

 ing to the strengthening and building up of local initiative, the other 

 the federation of those local units into one powerful central organiza- 

 tion. Mr. G. Herold Powell, general manager of the California Fruit 

 Growers' Exchange, who is at once the most famous co-operative or- 

 ganizer and an accepted authority, covers this point very thoroughly in 

 his book on "Co-operation in Agriculture." He says: 



''The business of a co-operative association can be carried on more 

 economically and effectively when a number of them federate into a co- 

 operative union which represents them in handling the problems that 

 are common to them all. From the business standpoint the advantage 

 that the capitalist derives from the centralization of a large amount of 

 capital can be obtained by the producer by the federation of co-operative 

 associations into a central democratic organization. The federation can 

 develop a c;omprehensive marketing system ; it can reduce the cost of 

 production; of preparing the product for shipment; and the distribution 

 and sale of the products. Such a co-operative union should be demo- 

 cratic in principle and not autocratic. It should represent centralized 

 co-operation. It handles the questions that etfect the local associations 

 as their representatives or agent, and it can perform this function more 

 economically and efficiently because the expense of comprehensive man- 

 agement is prohibitive in a small association. Like the large corpora- 

 tion, a central co-operative union representing a number of associations, 

 has a larger infiueuce than a small group of farmers working alone in 

 dealing with transportation, legislation and other p.ublic policy ques- 

 tions; in the purchase of supplies, the distribution and sale of products; 

 in the development of markets; and in preventing the enormous wastes 

 of fierce and unrestricted competition. 



The principle of federation may be carried as far as the problems of 

 an industry warrant. The farmers of a locality can group themselves 

 into local organizations, these in turn can federate into district associa- 

 tions which handle the common problems of the local organizations and 

 the district associations in turn may federate into larger central co- 

 operative unions, which represent the district associations in handling 

 the larger questions and the marketing policies for the entire industry. 

 This system of co-operative federations is already in operation in the 

 citrus industry in California, and it is the common method abroad of 

 handling the co-operative credit systems, the associations for the dis- 

 tribution and sale of farm products and other co-operative enterprises. 



