STATE POMOLOGICAL SOCIETY. 83 



ject only to the action of the board of directors, by-laws and 

 rules of the association. Expenses of operating the association 

 may be met by a percentage on returns for produce sold or by 

 a fixed price per package, the amount of such charge to be fixed 

 by the directors. 



COOPERATIVE PURCHASING. 



While many large organizations furnish supplies to members 

 on credit, with ample security, in most cases the merchandise 

 purchased by the association for the use of its members should 

 be paid for in cash in advance or on delivery. Any system of 

 extending unprotected credit requires large capital and often 

 results in considerable loss. Western organizations, however, 

 have built up a system of furnishing supplies to growers through- 

 out the season, these being paid for from the returns of the 

 growers' products shipped through the association. Some fruit 

 associations have carried this financing of the growers one step 

 further and made liberal advances for protective purposes such 

 as labor, water rents, taxes, etc. In these cases crop mortgages 

 are given by the grower to the association as security for such 

 advances. An organization to allow credit to members and not 

 sustain considerable loss should be in a position to collect all 

 accounts due. New associations will make a great mistake in 

 allowing liberal credit. Good security should always be held 

 by the organization for all advances made to growers. 



MEMBERSHIP AGREEMENT. 



A farmers' organization must of necessity be conducted 

 strictly upon business lines. This requires an agreement setting 

 forth the relationship between the member and the association. 

 Without such an agreement an organization lacks stability and 

 rarely succeeds. This is sometimes provided by the signature 

 to by-laws or a contract between the members or by a written 

 contract between each member and the organization. According 

 to law, each member must reserve to himself the right to fix 

 the selling price of his ow^n products, though he may not exer- 

 cise that right, as a matter of fact. 



Farm products should be graded in accordance wath specified 

 standards, established by the association, and an effort should be 



