552 AGRICULTURAL ECONOMICS 



be from $10,000 to $50,000. The cash membership fee should in few 

 instances be less than $25. If the requirements of the association 

 demand larger capital the membership fee must be increased propor- 

 tionately. In addition to the cash membership requirement a bond 

 should be given in the form of a promissory note executed by each 

 member in favor of the association, this bond to be held in trust as long 

 as the member remains in good standing, to serve as a guaranty for 

 faithful adherence to the constitution and by-laws of the association. 



The benefits of co-operative action in growing, transporting, and 

 selling farm products cannot be fully realized unless the members of 

 the association each and severally consider themselves delegated to 

 protect the interests of the association from criticism or dissension 

 from within, which would tend to limit the usefulness of the asso- 

 ciation, and they should also safeguard their community interests by 

 discouraging the formation of competing associations. Co-operative 

 competition is equally as destructive as individual competition. 

 Unfortunately, in some instances growers have not realized that the 

 formation of competing organizations, although each of them is co- 

 operative in its nature, is destructive to the best interests of the 

 community as a whole. In fact, the organization and development 

 of factional or competing associations in a community have been one 

 of the favorite devices of those antagonistic to the success of the 

 co-operative movement. 



The basis on which the association secures its revenues is an 

 important consideration, as is also the method of settlement with its 

 members. Revenues are essential to meet salaries and legitimate 

 operating expenses. The income of the association may be derived 

 from a commission on sales or from a flat rate per package for goods 

 handled. Either of these systems will prove satisfactory. The one 

 which seems to meet best the requirements of a particular association 

 should be adopted. In some instances the moneys received from the 

 sale of products, less a commission or deduction for the charge of 

 selling, are returned direct to the individual furnishing the products. 

 In other instances, where the products are given a uniform brand 

 and are sold on grade, so that the individual's product is lost sight 

 of, the returns for a given period are pooled and are prorated among 

 those contributing to the sales during that particular period. A short 

 pooling interval is desirable in order that growers who succeed- in 

 producing early crops, which often command a higher price, may be 

 given the benefit of this advantage. 



