COOPERATIVE MARKETING OF COTTON 31 
ing specifically for such sales in its renewal marketing agreement, 
under certain conditions. 
The number of pools in each association and the quantity of cot- 
ton in each pool depends on the class of the cotton received. Varia- 
tion in the number in different States and in different seasons 1s 
caused by variation in the volume of deliveries, by the general 
character of cotton production in the areas covered, and by seasonal 
conditions under which different crops are produced. Under the 
American classification for upland cotton, which is used by all asso- 
ciations, it is possible to have approximately 400 pools, but it is not 
probable that any one association will ever have all grades and 
staple combinations in a single season. During the 1924-25 season, 
for example, Oklahoma had 65 active pools; North Carolina, 96; 
and Alabama, 46. One large association had 86 pools in the 1921-22 
season; 56 in 1922-23; 76 in 1923-24; and 120 in 1924-25. 
Under the present pooling plan the member whose cotton classes 
“middling white 1-inch” receives the average price per pound ob- 
tained during the entire season from all sales of middling white 
1-inch cotton, less necessary deductions. He is assured the average 
price obtained for cotton of that class, but there is no positive as- 
surance that the price will reflect the true value of his cotton in 
relation to the cotton in pools of a higher or lower class. In other 
words, it is possible that cotton of a lower class may be sold under 
market conditions that result in a higher price per pound than that 
obtained for the middling white 1-inch pool. When this actually 
occurs it tends to defeat one of the main purposes of cooperative 
marketing, that of obtaining a premium for quality production. 
As a result of four years’ experience in pooling cotton a pooling 
feature is being worked out whereby one association, at least, ex- 
pects to bring about a more accurate equalization of returns between 
members, based on the actual value of the members’ cotton in rela- 
tion to all other cotton of lower and higher class. The Texas asso- 
ciation in its new contract, effective in 1926, proposes to make pay- 
ments to members “ according to differentials as to grade and staple, 
to be established conclusively by the association on the basis of 
actual differentials in prices received throughout by the association 
from the sales of each year’s crop.” It is expected that this plan, 
known as the economic value differential method, will be adopted by 
other associations when their present contracts expire. 
LOCALS 
In most of the cotton cooperatives both the association agree- 
ment and the by-laws provide for the organization and mainte- 
nance of informal local branches. Approximately 1,200 of these 
were organized in Oklahoma during and immediately after the or- 
ganization period of the association. A few continue to be active, 
but most of them failed to function after rendering service in the 
membership campaign. About 600 were organized in North Caro- 
lina in connection with the association’s initial field-service pro- 
gram. Four other associations use for similar purposes the com- 
munity or county units of State farmers’ organizations, especially 
the farm bureau. The remaining nine associations have no definite 
system of established branches. 
