CONSTITUTION OF THE EXCHANGES 87 



at any time to inspect the books and correspondence of the 

 association; and at the end of the fruit year the volume 

 of business handled by the house, the total and average 

 prices received, the unit packing costs, and any other items 

 of interest receive full publicity in the papers. This candor 

 on the part of the associations must receive the most un- 

 qualified approval, for there is little opportunity for chi- 

 canery and bad faith to start their corroding work as long 

 as everyone is not only free to inform himself of all busi- 

 ness activities, but the association even takes pride in pub- 

 lishing its accomplishments. 



Under the non-profit form of organization any producer 

 of citrus fruits within the territory declared eligible by the 

 directors may become a member of the association by paying 

 his proportionate share to the investment and subscribing 

 to the by-laws and contract. When the association is or- 

 ganized as an ordinary stock corporation a rule like the 

 following. Article VII of the by-laws of the La Verne 

 Orange Growers' Association, is typical: 



No person can ever hold stock in this Corporation who 

 is not engaged in the culture of citrus fruits. . . . The sale, 

 issue and the transfer of the stock of this Corporation shall 

 at all times be in the hands of the Board of Directors and 

 under their control, and no stock shall be issued or trans- 

 ferred to any person without authority for such transfer 

 being given by resolution formally adopted by the said 

 Board of Directors. 



Though this provision might point toward exclusiveness 

 of membership no such result is to be observed in practice. 

 It is simply a safeguard of the association for securing 

 complete control over its own membership. While the 

 ownership of stock gives a legal right to dispose of it, the 

 danger of stock falling into undesirable hands is eliminated 

 if the directors must pass on each sale of new stock or 

 transfer of old and if each share is issued against a par- 



