SELLING AGENCIES 177 



In some states where laws are not favorable to non-profit 

 sharing corporations, capital stock is issued for just suf- 

 ficient to cover the requirements of the law; some cases 

 as low as $1 to each member of the exchange. This is 

 turned in to cover office supplies and so on. Then the 

 business is still conducted on the non-profit sharing 

 scheme, still charging a tax just sufficient to cover the 

 cost of the organization with no thought or idea of 

 declaring any dividends upon the original investment. 

 Most states, however, permit non-profit sharing business 

 organizations in which case the small issue of stock is 

 not necessary. 



How Organized. From the viewpoint of managing 

 cooperative organizations, they are divided into three 

 branches: The local, the district and the central organ- 

 izations. This is especially necessary where a good many 

 individuals are concerned. The local organization is 

 made up of the individuals in a given fruit-producing 

 section. In the small towns or centers of production 

 covering a radius of 5 or 10 miles, growers will get to- 

 gether and organize, to carry on the business of fruit 

 selling or growing in their particular locality. This was 

 the original idea in forming exchanges, and there are 

 still scattered over the United States a number of these 

 local exchanges which have never become affiliated with 

 larger organizations. It was later found that these 

 locals were acting the same as individuals, and where 

 buyers in any fruit sections could secure a price from 

 one local exchange the rest of them would have to fol- 

 low suit. In other words, it becomes simply a game of 

 competition against each other, as before the organiza- 

 tion was formed. 



