SELLING AGENCIES 177 
In some states where laws are not favorable to non-profit 
sharing corporations, capital stock is issued for just suf- 
ficient to cover the requirements of the Jaw; some cases 
as low as $1 to each member of the exchange. This is 
turned in to cover office supplies and so on. Then the 
business is still conducted on the non-profit sharing 
scheme, still charging a tax just sufficient to cover the 
cost of the organization with no thought or idea of 
declaring any dividends upon the original investment. 
Most states, however, permit non-profit sharing business 
organizations in which case the small issue of stock is 
not necessary. 
How Organized.—From the viewpoint of managing 
cooperative organizations, they are divided into three 
branches: The local, the district and the central organ- 
izations. This is especially necessary where a good many 
individuals are concerned. The local organization is 
made up of the individuals in a given fruit-producing 
section. In the small towns or centers of production 
covering a radius of 5 or 10 miles, growers will get to- 
gether and organize, to carry on the business of fruit 
selling or growing in their particular locality. This was 
the original idea in forming exchanges, and there are 
still seattered over the United States a number of these 
local exchanges which have never become affiliated with 
larger organizations. It was later found that these 
locals were acting the same as individuals, and where 
buyers in any fruit sections could secure a price from 
one local exchange the rest of them would have to fol- 
low suit. In other words, it becomes simply a game of 
competition against each other, as before the organiza- 
tion was formed. 
