: 
COOPERATIVE MARKETING OF COTTON 25 
organization was conditioned was probably deemed necessary be- 
cause of the wide area of production; the economic condition under 
which the crop is produced, particularly the credit system; and the 
general conditions prevailing in the cotton industry. The quantity 
of cotton delivered to each association has been much less than was 
estimated during the organization period, with the result that the 
associations are actually handling only about 10 per cent of the 
American crop. In doing this, however, they have demonstrated 
that control of a major portion ‘of the crop is not essential to their 
operation. At the same time a larger proportion of the crop should 
enable them to lower their operating cost and facilitate their mer- 
chandising program. (See Table 2.) 
Some of the associations had relatively high per-bale costs in their 
first years, largely as a result of receiving less cotton than was antici- 
pated. Asa rule, increasing volume from year to year, other things 
being equal, has enabled them to reduce materially the per- -bale 
costs of operation. In the case of some of the larger associations it 
is doubtful if further increases in volume will result in material de- 
creases in marketing costs per bale. This does not mean that further 
increases are of doubtful advantage, but that additional reductions 
in cost are likely to be relatively small. 
TABLE 2.—Annual and total receipts of 15 cooperative cotton-marketing asso- 
citations, 1921-22 to 1924-25* 
! 
Receipts each season 
Association ; Total 
receipts 
1921-22 1922-23 | 1923-24 | 1924-25 2 
Pra ee 
Bales Bales Bales | Bales Bales 
Oklahoma Cotton Growers’ Association _______-_---- 91, 239 65, 868 | 118,743 | 141,440 417, 290 
Staple Cotton Cooperative Association ___...-------- | 156,026 | 168,021 | 107,432 | 124, 544 556, 023 
Arizona Pima Cotton Growers____-_______-_-_-____- 10, 676 10, 375 7, 948 9, 748 38, 747 
Texas Farm Bureau Cotton Association_____________ 93, 472 77, 706 182) 318 | 284,321 637, 817 
5 Farmers’ Union Cotton Growers’ Associa- 
a a ee oe se 400 3, 547 3, 341 3, 846 11, 134 . 
Noth Carolina Cotton Growers’ Cooperative Asso- | 
coe Te oe ee ee te ee ES seeeen | 135,912 | 130,865 | 116,273 383, 050 
Arkansas Cotton Growers’ Cooperative Association._|_._._____- 68, 492 37, 786 40, 361 146, 639 
South Carolina Cotton Growers’ Cooperative Asso- 
EEE 24 4 1k Se a Ca See ee tees eee eee 121,927 | 121,215 99, 325 342, 467 
Georgia Cotton Growers’ Cooperative Association___|-.--------| 55, 206 70,812 } 105, 977 231, 995 
Alabama Farm Bureau Cotton Association____-_-_-.|..-------- 57, 410 65, 319 79, 388 202, 117 
Louisiana Farm Bureau Cotton Growers’ Coopera- 
Ee Tae AT eS Be Pe ee eee COR ee eEs Pe eeee eres Pojoets | 29, 890 6, 535 36, 425 
Mississippi Farm Bureau Cotton Association________|---------- Sees Fae | 33, 858 44, 042 77, 900 
Tennessee Cotton Growers’ Association_____________|_. _------ lle a= Se es | 15,316 18,141} 33,457 
Missouri Cotton Growers’Cooperative Association___|----------|---------- | 3, 7 2,051 | 5, 759 
Illinois Cotton Growers’ Cooperative Association 108 108 
1,076,100 | 3, 120, 928 
i 
' 
1 Figures obtained in most instances from the American Cotton Growers’ Exchange. 
2 As of May 1 for some associations and therefore subject to slight revision. 
5 kta ee eee 351,813 | 764, 464 | 928, 551 
There is, undoubtedly, for each association a certain limit or least- 
cost combination of factors which make for efficient operation and 
which cannot be determined accurately in advance. It is improb- 
able that increases in volume will result in a degree of control suf- 
ficient to cause the elimination of large, efficiently operating cotton 
merchants. It is questionable if this degree of control would be 
desirable even if it were possible. In all “probability, however, the 
associations can increase their volume to a large extent before 
reaching that point in large-scale business where net gains diminish 
until they are offset by inevitable losses incident to overexpansion. 
