146 THE MONTHLY BULLETIN. 



state-wide selling agency for prune and apricol growers. In the prepa- 

 ration of this plan the methods of the successful growers' organizations 

 already in operation in California were studied and an effort was 

 made to devise for the prune and apricol growers a plan of organization 

 that would be particularly adapted for their requirements. In the 

 preparation of the plan, large and small growers were freely consulted 

 and their suggestions and criticisms met and adopted as far as possible. 

 The experience and advice of the Associated Raisin Company, The 

 Farmers' Union and other cooperative organizations were freely drawn 

 upon. Free use was made of the facilities offered by the State Market 

 Director's office. It may also he of interest to our packing friends to 

 assure them that several packers of wide experience were given an 

 opportunity to peruse and criticize the proposed contracts. Since its 

 perfection the plan has been widely endorsed by the Farmers' Educa- 

 tional and Cooperative Union, by the Grange, by agricultural news- 

 papers, by chambers of commerce, by bankers, business men and public 

 officials. 



CONTRACTS. 



It is not my purpose at this time to discuss in detail the various 

 provisions of the contracts, but a brief resume of their salient features 

 will not be out of place. In brief, the organization contemplated is 

 that of the formation of a corporation under the laws of California. 

 The corporation is to be capitalized at $2,500,000 divided into 25,000 

 shares of a par value of $100 each. Ten thousand shares will be pre- 

 ferred stock which can lie used only for certain well defined purposes, 

 chief among which is the acquiring of packing plants. Fifteen thousand 

 shares will he common stock, which will be taken largely by the growers. 

 Growers are asked to subscribe to the common stock at the rate of $10 

 per acre for each acre of hearing prunes or apricots owned by them. 

 This stock may be paid for in four equal payments of 25 per cent each. 

 The first payment is due on call when all the conditions called for in 

 the subscription and voting agreement have been complied with. The 

 second payment is due ten months after the call for the first and the 

 remaining two payments at yearly intervals thereafter. The organiza- 

 tion expenses are met by funds raised by the San Jose business men 

 and commercial organizations, and by payments from growers, who are 

 asked to contribute 5 per cent of their subscription when signing, with 

 the understanding that this 5 per cent will later be deducted from their 

 first regular payment for the stock. 



The formation of the corporation and the election of its directors 

 are entrusted to a board of 25 trustees, each one of whom must be a 

 bona fide prune or apricot grower. Twenty-four members of this 

 board are elected by the subscribers to the first $500,000 worth of stock 

 subscribed for. The manner in which the trustees are elected is very 

 carefully denned in the subscription and voting trust agreement. 



In addition to the formation of th rporation, the trustees are 



authorized to vote all of the common stock as a unit at each meeting 

 of the stockholders during the term for which they are chosen. The 

 trustees thus have the authority to choose and remove the directors. 

 Through the operation of the board of trustees, the rights of the small 



