10 BULLETIN 1109, U. S. DEPARTMENT OF AGRICULTURE. 



or advancing the prosperity and business interests of the company or the object for 

 which it was organized, limited only by the laws of the Commonwealth or by the 

 charter or by-laws of the company explicitly reserved to the members. 



Members may, by a two-thirds vote of those present and voting, at any annual meet- 

 ing or other meeting called for that purpose, authorize the directors to levy an assess- 

 ment, not exceeding a definite amount per barrel, or its equivalent, on cranberries 

 marketed; the proceeds to be spent for advertising or other special services relating 

 thereto, but for no other purpose; the assessment to be deducted from the proceeds of 

 sales. 



The expenditure for advertising amounted to 27^ cents a barrel 

 for the year 1920-21. 



The directors are also empowered to determine the percentage of 

 the proceeds of sales to be retained for selling and operating expenses 

 and the maintenance of the operating fund, which percentage, it is 

 estimated, should not exceed 7 per cent. 



The companies have no capital stock. The State companies are 

 allotted 2 per cent, deducted from sales f. o. b. shipping point, to 

 cover operating expenses, while the central organization is allotted 

 5 per cent. In Massachusetts a reserve fund is maintained which 

 consists of the unexpended balance of the 2 per cent allotment 

 together with the company's share of the unexpended balance of the" 

 5 per cent allotment to the central association. These unexpended 

 balances are kept in the hands of the company for one or more years 

 before they are returned to the growers in the form of sales expense 

 refund. A small reserve of from $1,000 to $5,000 is maintained by 

 the Wisconsin company on the same basis. 



In New Jersey a revolving fund is maintained by means of loans 

 from members. The initial loans are repaid in five equal annual 

 installments and all subsequent loans run for 5 years without interest. 

 The Massachusetts company has a similar arrangement, with the 

 exception that the loans run for 10 years instead of 5. Since the 

 loans are made by members in proportion to their volume of patron- 

 age, each member contributes a share to the revolving fund equal to 

 the benefits he receives from the association. 



'During the year 1920 the New England Cranberry Sales Co. bor- 

 rowed over $400,000, which was used to make partial payment to 

 members for cranberries of standard brands shipped. These loans 

 are made upon receipt from the shippers of the bills of lading. These 

 advance partial payments have varied from $3 to $5 a barrel, depend- 

 ing upon the market price of the berries. The Growers' Cranberry 

 Co. of New Jersey advanced over $100,000 to members in a similar 

 manner. 



In this way the members, through group action, perform a financing 

 as well as a marketing function. The collective credit of the group 

 makes necessary fimds available to the individual growers. 



