COMMUNITY PRODUCTION OF DUKANGO COTTON". 9 



amount. The value of cotton marketed in 1912 was about $150,000 

 and in 1913 something over $300,000. 



Sales were made either through cotton brokers by consignment or 

 direct to manufacturers. In case of consignment, arrangements were 

 made for an advance from the factor of an amount sufficient at least 

 to take up the bank loan and release the warehouse receipts, in order 

 to permit shipment by the association. On the sale and delivery of 

 the cotton by the factor final settlement was made. In direct sales 

 samples were submitted to users, the cotton they purchased being 

 paid for on shipment by sight draft attached to the bill of lading. 



A LONG-STAPLE COTTON GROWERS' ASSOCIATION. 



The Imperial Valley Cotton Growers' Exchange operated during 

 both seasons (1912-13) with very limited capital. The charge 

 assessed was too low to cover operating expenses in 1912 and was 

 not increased until late in the season of 1913. The larger volume of 

 business in sight the second year made any increase appear unneces- 

 sary. In spite of this fact the exchange completed both seasons 

 with operating expenses fully paid, the first season by the make- 

 shift of buying and selling cotton, and the second season by using 

 the same methods and by making added charges per bale on such 

 cotton as was marketed late. This was not a satisfactory arrange- 

 ment, because of the possible danger to a cooperative organization 

 of engaging in the cotton-buying business and because of the loss of 

 confidence that might result from this practice and also from trying 

 to operate on a financial basis requiring extra assessments against 

 some of the cotton in order to cover running expenses. To perpetuate 

 the life and usefulness of the organization these practices had to be 

 done away with. Furthermore, the exchange in 1913 had served 

 mainly as the necessary channel for marketing Durango cotton, its 

 work in marketing short-staple cotton being only incidental. 



The necessity for a nonprofiting long-staple cotton growers' asso- 

 ciation, financed on a substantial self-supporting basis, was quite 

 evident to leading members of the exchange. Therefore, early in 

 1914 a plan was developed for the reorganization of the exchange on 

 (1) a long-staple, community cotton-growing basis, (2) as a nonprofit- 

 [ng cooperative association, and (3) with financial arrangements pro- 

 viding funds adequate to cover all marketing operations. Some ele- 

 ments of this plan had been included in a proposed reorganization 

 scheme outlined in the spring of 1913, which was not carried through 

 because of luck- of sufficient interest among the members. The plan 

 as finally worked oui represented the ideas of many of the best cotton 

 growers in the Imperial Valley. An organization was finally ef- 

 fected in the summer of 191 I. 



