TWENTY-NINTH FRUIT-GROWERS' CONVENTION. 



63 



co-operate with their rivals, the packers, under agreements completely 

 protecting their constituents and yet dealing so fairly Avith these rival 

 interests that their second season finds the California Fruit Agency 

 more harmonious and stronger than ever. 



Equal success has attended the same method as worked out in the 

 California Fruit Exchange in deciduous fruits at the north during the 

 first three years of its organization. Its steady success in showing its 

 patrons the benefits of co-operation has led to a rapid growth. This 

 winter it is marketing dried fruit from Santa Clara County, and next 

 year it will be operating in southern California as well. 



Here, then, is a piece of machinery fully tried, and always successful 

 in proportion to the extent of its use; easily adapted to meet the 

 special needs of any industry and to unite in any reasonable and just 

 manner with any other permanent factors in its field of work. This is 

 possible co-operation. 



The formation of local associations, exclusively of fruit-growers, is 

 the first necessity; the function of these being to get fruit ready for 

 shipment in car lots, and to unite in a general agency for marketing 

 the same. When such an organization is sufficiently complete it may 

 unite for the accomplishment of common purposes even with opposing 

 interests, as in the case of the California Fruit Agency and the Southern 

 California Fruit Exchange in the south, and the California Fruit Dis- 

 tributors and the California Fruit Exchange in the north. Doubtless 

 greater efficiency could be had if all fruit-groAvers would unite in a 

 growers' organization, but they will not, and hence that idea is of 

 impossible co-operation. Many growers will continue, for one reason 

 or another, to remain outside of any such co-operative work. Why not 

 recognize this and make the best of it? Something must be conceded 

 by each before men can co-operate. Since a large fraction of the growers 

 will not co-operate, their business necessarily goes to the commercial 

 packers and shippers. These, then, are a necessary part of any fully 

 effective co-operative plan. They must, therefore, be conceded a profit 

 large enough to hold them loyal to the general plan. 



Since these packers and shippers are buyers, their interest in the 

 selling market is the same as that of the grower; that is, they desire to 

 get as much as possible for their product. Since such an alliance is 

 purely to secure a steady and profitable market, it is entirely homo- 

 geneous; but these packers and shippers as buyers naturally wish to 

 buy as cheaply as possible and the grower desires to sell for the highest 

 obtainable price. Co-operative selling tends to sustain prices, and is 

 therefore opposed to the interests of shippers and packers who wish to 

 speculate. At this point the latter must give way in return for a rea- 

 sonable basis of profit conceded by the allied growers; but their specu- 

 lative profit is uncertain and they could well afford to forego this to 



