PROBLEMS OF COOPERATIVE MARKETING ASSOCIATIONS 19 



to not more than 25 per cent of the resale price. Many arguments 

 and examples are employed to demonstrate to the retailer that if 

 relatively small margins are maintained his sales will increase and 

 his total profits, consequently, will be larger than would otherwise 

 be the case. It is interesting to see that as powerful an organization 

 as the exchange has approached this problem from the point of 

 view of cooperation with the trade. 



It is doubtful whether many fruit and vegetable associations can 

 follow the exchange's lead in giving direct assistance to the retailers, 

 but they can improve the fundamental situation gradually by im- 

 proving the quality of the" product offered for sale, and as a group 

 they may be able to make important changes in methods of retailing 

 fruits and vegetables. 



All marketing costs, as already stated, increased rapidly from 1917 

 to 1921. At the same time shipments of perishables were increas- 

 ing, and the demand proved insufficient to absorb the increased sup- 

 ply at prices commensurate with the general advance in price levels. 

 It is idle to attempt to cure, or even explain the situation, by con- 

 sidering only one factor, such as retailing costs. It does raise the 

 question whether retailing practices are as economical and efficient 

 as they should be. but from the grower's point of view it points more 

 definitely to an analysis of his production, grading, packing, and 

 selling practices ; in fact, to a careful determination of what products 

 he can ship and in what form they should be shipped to avoid loss. 



TRANSPORTATION DIFFICULTIES 



Car shortages were a common complaint of the association man- 

 agers, with delays in transit, ineffective refrigeration service or 

 heating service held responsible for much deterioration and loss. A 

 discussion of this problem does not fall within the scope of this 

 bulletin. An association should be in a better position than an indi- 

 vidual to demand satisfactory service from the carriers. An asso- 

 ciation, however, can help further in overcoming these difficulties by 

 giving the railroads reliable advance information regarding the num- 

 ber of carloads to be moved from the region and the approximate 

 shipping dates. Personal contacts and a spirit of cooperation in 

 dealings with railroad officials will serve the association better than 

 a spirit of indifference or hostility. Cooperating growers can not 

 ignore the railroads' problems and expect universally satisfactory 

 service. They must, at the very least, go far enough into the ques- 

 tion of transportation to discover the reason for the poor service of 

 which they complain. 



A bureau of service has been organized by the Interstate Com- 

 merce Commission to keep in touch with operating and transporta- 

 tion conditions throughout the country. Special attention is given 

 by this agency to such problems as the need for increased car mile- 

 age, for heavier car loading, and for a decreased percentage of bad- 

 order cars. 



The bureau of service keeps in close contact with the car service 

 division of the American Eailway Association. With a view to en- 

 listing the cooperation of the shippers, the car service division has 

 organized a number of regional advisory boards. The expressed 



