CITRUS GROWERS' EXCHANGES 71 



boxes shipped is impossible, for would the owner of the five 

 acre grove, valued, say, at $15,000, submit to making a 

 contribution equal to that of the man whose forty-five acre 

 grove is worth $45,000? Probably the acreage system is 

 the best that can be devised, though imperfect. 



When a new association is being formed it is usual to 

 secure a loan from a bank on the note of some of the lead- 

 ing members or upon the note of the corporation. Securing 

 a loan to start a cooperative project is difficult in some coun- 

 tries and in parts of our own country where the members 

 have little or no financial responsibility. But as stated 

 above, the orange growers are with few exceptions men 

 of some means, and it is perfectly easy to obtain the capital 

 requisite for a packing house. To the loan may be added 

 the proceeds from entrance fees or sales of stock, but it is 

 not usual for members on starting an enterprise to build 

 and equip their plant from assessments of members only, 

 without recourse to a loan. In fact, many associations 

 allow the loan to continue indefinitely, simply regarding 

 interest charges as a part of ordinary expenses, while others 

 pay off their indebtedness by retaining a small amount each 

 year from the proceeds of fruit sales. 



The provision in the non-profit organizations that mem- 

 bership shall not be transferable is wise. There is no need 

 of dwelling on the dangers of allowing outside or opposed 

 interests to be represented in a cooperative association. In 

 ihe ordinary share corporation the same end is accomplished 

 by paying no dividends or only ordinary dividends on the 

 shares. If no interest is paid, there is no inducement for 

 non-growers to try to gain control over shares, or for 

 growers to take out more shares for each acre than are 

 required by the rules of the association. Besides, the issu- 

 ance and transfer of shares is usually rigidly controlled by 

 the directors of the association. Byt citrus property in 



