Organization of an Association 65 



ing the enormous wastes of fierce and unrestrained com- 

 petition. 



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 associations which 

 handle the common problems of the local organizations, 

 and the district associations in turn may federate into 

 larger central cooperative unions which represent the dis- 

 trict associations in handling the larger questions and the 

 marketing policies for the entire industry. This system 

 of cooperative federations is already in operation in the 

 citrus industry in California, and it is the common method 

 abroad of handling the cooperative credit systems, the 

 associations for the distribution and sale of farm products, 

 and other cooperative enterprises. 



Necessity of a Federation of Associations for Handling 

 Farm Products 



- A federation of associations is especially needed to 

 handle the distribution and marketing of farm crops and 

 to protect the producer in the purchase of supplies. 

 There is a tendency among those who handle the common 

 necessities of life to organize in such a manner as to re- 

 strict competition, to regulate the sale of produce, and 

 the price paid to producers, and to control the prices that 

 the consumers have to pay. It has been shown by an 

 investigation of the Attorney-general of New York State 1 



1 Report of the Attorney-general in the Matter of Milk Investigation, 

 Senate Document No. 45, 1910. 



