COMMUNITY production of dueango cotton. 7 



As progress in the industry can be expected to result chiefly 

 through the efforts of organized growers, an account is given of the 

 different organizations that have taken part in the evolution of the 

 industry under discussion. There have been three cooperative or- 

 ganizations of cotton growers in the Imperial Valley, which have 

 had much to do with the progress of the industry. 



In 1910 the growers formulated and put into operation a plan for 

 a cooperative ginning and oil-mill company. This company erected 

 and operated the first permanent ginning plant and partly financed 

 the erection of an oil mill. That the company was finally taken over 

 by private interests and that the oil mill was completed by them is 

 no reflection on the plan as conceived by its originators. An outline 

 of the plan is given because of the general interest it may assume in 

 connection with cotton growers' cooperative marketing, ginning, and 

 oil-mill companies. 



The organization was established to secure community credit. A 

 stock company was formed, the stock being valued at $15 a share. 

 Bona-fide cotton growers subscribed for this stock, taking a share for 

 each 2 acres planted or to be planted to cotton. A note was given the 

 company for the value of the stock subscribed for, payable in cotton 

 seed on the basis of $15 per ton. As each acre yielding a bale of cot- 

 ton yields also half a ton of seed, it was expected that seed from each 

 2 acres of cotton would pay for a share of stock at the end of the 

 first crop year. The note was guaranteed by a crop mortgage, writ- 

 ten to include the crop of the succeeding year if the note was not 

 fully paid the first year. 



The financing was done through southern California banks, and 

 corporation notes were given, indorsed by each director, stock notes 

 and crop mortgages being attached as collateral security. Obliga- 

 tions of more than $100,000 were assumed by the cooperative com- 

 pany. Had economy been used in carrying out the plan there seems 

 to be no reason why it should not have been successfully consum- 

 mated. 



COOPERATIVE COTTON HANDLING. 



The Imperial Valley Cotton-Growers' Exchange, organized early 

 in 1012 and operated during the marketing seasons of 1912 and 1913, 

 was the first successful attempt of the growers to work cooperatively 

 in marketing the crop. This organization functioned purely as a 

 warehousing and marketing association, though it was incorporated 

 to engage in all lines of activity touching the cotton industry, includ- 

 ing winning and the manufacture of oil. It was successful in mar- 

 keting the 1912 crop of its members, mainly short-staple cotton. It 

 bought and sold cotton successfully and secured for its members bet- 

 ter returns for their cotton than could have been realized with only 

 private buyers in the field. The exchange did not buy extensively, 



