MARKETING BARRELED APPLES 31 
manager or sales agency and pool the returns so that all members 
receive the same prices for the same grades and varieties, according 
to average returns for the season. Sales by the associations are made 
preferably for cash at shipping point, but many carloads are sold 
subject to acceptance and sometimes at a price including freight and 
other charges. Many associations ship more or less stock for sale 
on commission. The services of brokers are employed by some 
associations to assist in finding buyers but the majority of sales are 
direct to car-lot dealers. 
ORGANIZATION 
Two general forms of organization are in use—the capital stock 
plan and the nonstock plan. Reports from 38 organizations indicate 
that 17, or 44.7 per cent, are formed as cooperative stock associations, 
and 55.3 per cent are of the membership type. The most common 
practice at present in the larger federations in regard to the form of 
organization used is the nonstock or membership form in the over- 
head organization. To handle the permanent investments, such as 
buildings and equipment, one of two methods is used: Hither the local 
associations are formed as stock organizations and the permanent 
investments are held by them or a subsidiary corporation of the 
stock type is set up to own the property and handle the operation 
of the grading and warehousing. The stock in such subsidiary 
corporations is owned by the grower members of the locals of the 
federation. 
CONTRACTS 
The general practice of the cooperative associations that handle 
barreled apples is to use contracts of some sort. Of 37 organizations, 
29 had contracts. In independent unitary associations contracts 
are made directly between the association and the grower members. 
In federations the most common practice is to make contracts 
between the growers and the locals, which in turn contract with the 
overhead organization for the delivery of the product. Where 
subsidiary corporations have been set up, cross contracts between 
the growers and the subsidiary corporation are made to provide for 
the grading and warehousing of the apples of each member. 
STANDARDIZING AND GRADING 
Practically all barreled-apple associations make some provision 
for insuring the shipment of good-quality products. Methods used, 
however, vary greatly. In some of the organizations grading and 
packing is done by the growers without machinery. In others, many 
of the growers have machine sizers and do the grading and packing 
on the farm, but the difficulty of supervision by the association and 
the resulting lack of uniformity of such farm-packed apples have 
induced most organizations to adopt systems of central packing. 
This is especially true in the larger organizations, as, for example, 
in the federations, where in most cases each local has a central pack- 
ing house. Generally the packs of the various locals are kept uni- 
form by inspectors from the central organization. 
In grading, most organizations separate varieties and qualities of 
fruit. In addition, several associations size the fruit closely. Alto- 
gether, while much improvement in standardization has been made 
