Marheting Pecans 151 



sale of the products handled. The California Fruit Growers' 

 Exchange, whose standardization has reached a high stage, 

 is able to advertise citrus fruits on a national scale at a 

 comparatively small cost for each box of fruit handled. 

 This is due partly to its volume of business and partly to 

 the grouping of its produce under various brand names 

 whose standards are rigidly enforced. 



Membership contracts. 



Only the producers of the commodity should be admitted 

 to membership in a cooperative marketing association. This 

 is to insure unity of interests among the members and to pre- 

 vent any personal schemes. 



There must be a legal and enforceable contract between the 

 association and the member, by which the latter is bound to 

 sell and deliver his commodity to the association over a 

 period of years ; and the association is bound to receive, grade, 

 store, ship and sell the product to the best possible advantage, 

 wherever a market can be found, and to pay to the member 

 for his commodity the average price received, less the actual 

 cost of operation. 



Enforceable contracts are essential to insure delivery of 

 the product to the association. Interests with which a coop- 

 erating marketing organization is competing sometimes offer 

 temptations to the members in the form of higher prices, 

 for the purpose of breaking up the association and thereby 

 eliminating this competition. Without some method of hold- 

 ing the members to their contracts, the association could 

 never be assured of sufficient volume of business. It would 

 be unable to make stable market arrangements, secure capable 

 help, or reach any final agreements for financing, storage 



