TWENTY-EIGHTH 



FRUIT-GROWERS' CONVENTION. 



139 



Also, the co-operative plan, by subjecting all goods to rigid inspection, 

 secures greater and more uniform care in the preparation for market 

 and far greater promptness in shipment than is possible by the indi- 

 vidual plan. 



The great hope of the future for our industry lies in the success of 

 the various walnut-growers' associations, and in their wise co-operation 

 for the common welfare. 



In addition to the securing of the three fundamental conditions of 

 success already discussed, the co-operative plan, if entered into by all 

 the growers, would entirely eliminate domestic competition among the 

 growers, which is, to say the least, a very serious menace to good prices. 



Perhaps the best way to exemplify the advantages of the co-operative 

 plan would be to briefly review the history of the walnut-growers' 

 associations. In the year 1896, the evils of home competition became 

 so apparent that a general movement began in the way of organizing 

 associations. The immediate effect was to remove competition from 

 among the members of the respective associations, but there still existed 

 competition between one association and another. The absolute neces- 

 sity of consolidation of all their interests became so evident that in 1897 

 the various associations came together for the express purpose of putting 

 a final end to domestic competition of all kinds, by agreeing upon a 

 uniform price at which all would sell. When they adopted this plan, 

 there were 414 carloads of nuts produced in the State, and the selling 

 price for highest-grade softshell nuts was 7 cents per pound. Five 

 years later, in 1902, they produced 811 carloads of nuts, and the price 

 of first-grade softshells was 10 cents per pound. Thus you will see 

 that although the quantity produced has almost doubled, yet the price 

 has increased almost 43 per cent. The greatest difficulty with which 

 the associations had to contend, in securing the maximum price possible, 

 was to eliminate the element of speculation on the part of the buyer- 

 They found him naturally inclined to "bear the market." The plan 

 finally adopted was to employ brokers to sell the nuts to the jobbers or 

 retailers, on a stated commission, and at the prices fixed by the execu- 

 tive committee, composed of representatives of all the associations. 

 Usually the broker received 6 per cent, but it has now been reduced to 

 5 per cent of the gross sales. In consideration of this compensation, he 

 not only agrees to procure the sale of the nuts, but also guarantees the 

 collection of the money, by himself advancing the price of the nuts, less 

 his commission, at the time they are loaded on the cars, and he assumes 

 all the risks of collections and rejections at the point of final delivery. 

 Thus the grower has the advantage of a cash f. o. b. sale. It would 

 naturally be supposed that on this plan the interests of the broker would 

 be identical with those of the grower in the matter of fixing a high price, 

 for the higher the price the greater will be his commission; but there is 



