Organization of an Association 67 



When several associations have been formed to handle the 

 product of an industry, like potatoes, apples, milk, butter, 

 poultry, citrus fruits, or cotton, the associations in each 

 special line can organize a marketing agency to provide 

 the marketing facilities for them all. This agency can 

 develop markets for the associations by advertising or 

 in other ways ; can furnish daily information on the condi- 

 tions of the markets to all of the associations ; it can take 

 the necessary steps to meet unfair business competition 

 and act as an agent in securing supplies, in handling the 

 transportation, legal, and other general questions that 

 affect all of the associations alike. 



Cooperative Organization of the Federation 



The central federation should be organized on coopera- 

 tive principles, and the dominant feature in its manage- 

 ment should be cooperation and not centralization. The 

 membership of the federation is composed of the associa- 

 tions, and each is represented on its board of directors. 

 Each association preserves its own freedom and individual- 

 ity but they join together under a legal form to promote 

 the business interests of the industry. The federation 

 may be formed on a non-stock basis or with limited capital 

 stock and with the fundamental cooperative principles 

 as set forth in the preceding pages included. No divi- 

 dends greater than the customary rate of interest should 

 be paid on the stock. The federation should perform its 

 functions for the associations at cost. The money needed 

 for operating expenses should be raised by assessing a 

 fixed amount per unit of material sold, or by an arbitrary 

 retention of a fixed percentage on the gross sales. The 



