COOPERATIVE CITRUS-FRUIT MARKETING AGENCY. 21 
damages in the event that the contract is breached, and all give the 
directors certain authority with regard to the amounts that shall be 
deducted from the returns received for the fruit of the members. 
Provision for pooling the fruit of the members of an association is 
made either in the by-laws or in the contract between the members 
and the association. The period over which each pool shall extend 
is determined by the board of directors or by the members at the 
annual meeting. The directors determine the percentage of his total 
crop which each member shall contribute to the various pools. 
However, it is generally provided that this percentage shall be the 
member's pro rata share of the total amount of fruit to be delivered 
during that period. A member, at the discretion of the directors, 
may be excused from delivering fruit to a certain pool, but in that 
event he may be required to make up the deficiency during any other 
pooling period. Grading of the fruit is under the immediate control 
of the manager, and returns to members are made on the basis of 
the average price received for all fruit of the same variety and grade 
delivered to the packing house during the period of the pool. 
DIRECTORS AND OFFICERS. 
The association is governed by a board of five or seven directors. 
Weekly meetings of the directors are held during the active season, 
as a general rule, and monthly meetings at other times. The direc- 
tors have full control of the management of the association, and elect 
the officers and a manager. The manager is responsible for the 
conduct of the business under the direction of the board of directors. 
The officers of the association consist of a president, a vice president, 
a secretary, and a treasurer. The president and vice president must 
be members of the board of directors. In most cases the manager 
also acts as secretary, while the treasurer may be an individual or 
a financial institution. 
FINANCIAL POLICIES. 
Money necessary to construct a packing house or to purchase 
machinery and supplies is secured, as a rule, by loans from local 
banks or banks in Los Angeles. Of a new association, the banks 
commonly require a trust deed to the packing house and real estate, 
along with the note of the corporation. In some cases a bank may 
require that the directors of the association indorse this note. In a 
few instances associations have financed packing-house construction 
or the construction of precooling plants by issuing bonds. This is 
feasible in the case of established associations which have assets other 
than the proposed building to assure the safety of the bond issue. 
As a rule, a small assessment per box is made to retire indebted- 
ness incurred through the construction of a packing plant, and in 
addition receipts from the sale of stock may be applied against this 
loan. A. plan very commonly adopted in recent years is to have 
the "building and maintenance" or "indebtedness" assessments in 
the form of partial revolving funds. Thus, out of a total assessment 
of 5 cents per box for "building and maintenance," 2 cents may be 
applied directly to the payment of outstanding indebtedness, while 
the 3 cents remaining may be used for the same purpose with the 
understanding that this latter amount shall be credited to the growers 
