242 Cooperation in Agriculture 



tion with the associations distribute and market the fruit 

 for the growers. The local associations, the district ex- 

 changes, and the California Fruit-growers' Exchange are 

 organized and managed by the growers on a non-profit 

 cooperative basis, each of them operating at cost, and 

 each distributing the entire net proceeds to the growers 

 after operating expenses are deducted. 



The Local Associations. There are a hundred and 

 fifteen local associations in the California Fruit-growers' 

 Exchange. These associations are formed by the growers 

 of a community, the membership including from forty to 

 two hundred members and on the average about five 

 hundred acres of groves. The growers usually organize 

 as a corporation without profit under the laws of Cali- 

 fornia and issue stock in proportion to the bearing acreage, 

 to the number of boxes shipped, or in equal amount to 

 each grower. The association usually owns a packing- 

 house alongside a railroad where the fruit of the members 

 is assembled, graded, pooled, packed, and prepared for ship- 

 ment, these operations being done at cost prorated on the 

 number of boxes shipped by each grower. The associa- 

 tions are managed by a board of directors and a manager, 

 and are conducted exclusively for the benefit of the grow- 

 ers. They accumulate no profit and declare no dividends. 

 The fruit is generally pooled each month, or sometimes 

 a pool includes the entire season, each grower receiving 

 his proportion of the proceeds received for each grade 

 handled during the pool. Occasionally the association 

 handles the fruit for each member individually. Many of 

 the associations pick the fruit, and some of them prune and 

 fumigate the trees for the members. The associations 



