COMMUNITY PRODUCTION OF DURANGO COTTON. 9 
amount. The value of cotton marketed in 1912 was about $150,000 
and in 1913 something over $300,000. 
Sales were made either through cotton brokers by consignment or 
direct to manufacturers. In case of consignment, arrangements were 
made for an advance from the factor of an amount sufficient at least 
to take up the bank loan and release the warehouse receipts, in order 
to permit shipment by the association. On the sale and delivery of 
the cotton by the factor final settlement was made. In direct sales 
samples were submitted to users, the cotton they purchased being 
paid for on shipment by sight draft attached to the bill of lading. 
A LONG-STAPLE COTTON GROWERS’ ASSOCIATION. 
The Imperial Valley Cotton Growers’ Exchange operated during 
both seasons (1912-13) with very limited capital. The charge 
assessed was too low to cover operating expenses in 1912 and was 
not increased until late in the season of 1913. The larger volume of 
business in sight the second year made any increase appear unneces- 
sary. In spite of this fact the exchange completed both seasons 
with operating expenses fully paid, the first season by the make- 
shift of buying and selling cotton, and the second season by using 
the same methods and by making added charges per bale on such 
cotton as was marketed late. This was not a satisfactory arrange- 
ment, because of the possible danger to a cooperative organization 
of engaging in the cotton-buying business and because of the loss of 
confidence that might result from this practice and also from trying 
to operate on a financial basis requiring extra assessments against 
some of the cotton in order to cover running expenses. To perpetuate 
the life and usefulness of the organization these practices had to be 
done away with. Furthermore, the exchange in 1913 had served 
mainly as the necessary channel for marketing Durango cotton, its 
work in marketing short-staple cotton being only incidental. 
The necessity for a nonprofiting long-staple cotton growers’ asso- 
ciation, financed on a substantial self-supporting basis, was quite 
evident to leading members of the exchange. Therefore, early in 
1914 a plan was developed for the reorganization of the exchange on 
(1) a long-staple, community cotton-growing basis, (2) as a nonprofit- 
ing cooperative association, and (3) with financial arrangements pro- 
viding funds adequate to cover all marketing operations. Some ele- 
ments of this plan had been included in a proposed reorganization 
scheme outlined in the spring of 1913, which was not carried through 
because of lack of sufficient interest among the members. The plan 
as finally worked out represented the ideas of many of the best cotton 
growers in the Imperial Valley. An organization was finally ef- 
fected in the summer of 1914. 
