146 COOPERATIVE MARKETING 



considering them in the following chapter in connection 

 with the achievements of the exchange system. Coopera- 

 tion in the citrus industry in California, then, arose out of 

 the failure of buyers and commission men to market a 

 constantly increasing output. The principles underlying 

 the whole organization are the distribution of risk and the 

 development of a marketing mechanism that could transfer 

 citrus fruits from seasonal luxuries into staple commodities 

 of everyday and universal consumption. This mechanism 

 is composed of three kinds of organizations : one to pack 

 the fruit, one to sell it, and one to furnish the facilities for 

 selling. The growers own the packing associations, the 

 packing associations own the district exchanges, and the 

 district exchanges own the central exchange. Therefore 

 the growers own the entire exchange system. No outside 

 authority dictates their policies, and their efficient organiza- 

 tion is due to their own constructive originality, guided by 

 those aggressive and wise leaders whom they have had the 

 good judgment to secure and follow. There is no feature 

 in the exchange system which is not strictly cooperative — 

 growers, associations, district exchanges, all have an equal 

 standing and equal opportunity in the Exchange. The sys- 

 tem is a real marketing democracy. 



