320 The Commercial Apple Industry 



and equitable. In emphasizing the advantage of the non- 

 stock system, it should be stated that such organizations 

 enjoy special benefits under legislation fostering coopera- 

 tive effort among farmers. The activities of private stock 

 corporations may be curtailed by legislation designed to 

 prevent operations in restraint of trade. 



Good business management is one of the prime prere- 

 quisites for the establishment of a successful cooperative 

 organization. It is obvious that a sufficiently large ton- 

 nage of fruit must be handled to warrant the employment 

 of an experienced and competent manager. The board of 

 directors should exercise supervisory powers and should be 

 thoroughly in touch with the business operation of the or- 

 ganization. Too often association managers have been se- 

 lected on account of their political activity rather than for 

 their training and experience in marketing fruit. It is 

 highly important that this manager should have ability as 

 a salesman; otherwise the advantages of cooperative selling 

 may be lost. 



Good business practices should be employed. A proper 

 accounting and auditing system should be installed and 

 those handling the funds should be bonded. It should be 

 possible for the directorate and management to know the 

 exact condition of the business at all times. 



If a cooperative organization is to enjoy stability, its 

 members must be bound under a specified contract to sell 

 their fruit through the association. One-year contracts 

 are usually satisfactory, although they may be made for 

 a longer term. On joining the association, each member 

 should be required to sign a contract whereby he agrees to 

 sell his fruit through the association. This contract must 



