American Agriculturist 
v 
THE FARM PAPER THAT PRINTS THE FARM NEWS 
“Agriculture is the Most Healthful, Most Useful and Most Noble Employment of Man . ,, —Washington 
Reg. U. S. Pat. Off. 
Established 1842 
Volume 114 
For the Week Ending September 27, 1924 
Number 13 
Getting - Down to Rock Bottom 
Some Experiences of the Western New York Fruit Growers’ Cooperative 
T HE Western New York Fruit Growers’ 
Cooperative Packing Association, Inc., 
has recently undergone a rather drast'c 
reorganization which both Executive, 
Committee and Board of Representatives, as well 
as outside competent opinion, believe have put th3 
organization on a sounder basis than before. 
An Encouraging Action 
By M. C. BURRITT 
withdrawal of five or six old locals who didn’t want 
a five-year contract or for other reasons, and in 
the inability of several others to function because 
of lack of volume locally. 
It must be admitted that the campaign as a 
So many inquiries have come to the writer as whole for increased tonnage on a five-year basis 
well as to the office and so many rumors are was a practical failure as measured by tangible 
afloat, that it seems desirable to set forth frankly results. Superficial reasons for this failure were 
the essential facts. American Agriculturist delay in getting started and in carrying it on 
readers have previously been informed of the rapidly enough, and failure of team captains and 
progress of the movement and are entitled to this members in the majority of the localities worked 
information. I shall speak frankly but omit as in to function so as to get results. Back of these 
far as possible reference to personalities. These reasons were the real ones, viz., that too many 
are inevitably involved but they are 
after all subordinate to sound prin- ■ -.- - . .. . — 
ciples and policies. And it is a 
pleasure to be able to say that no 
personal criticism, no charges of 
gross incompetency, no dishonest 
act attaches itself to any of the in¬ 
dividuals concerned. In fact it would 
be hard to find a more sincere, 
devoted and hard-working group of 
employees in any cooperative or¬ 
ganization anywhere. 
Responsibility of Membership 
It is one of the advantages of the 
cooperative method of marketing 
that the organization must be respon¬ 
sive to the will of its members if it is 
to survive. The full force and signifi¬ 
cance of this will is frequently not 
expressed in votes and formal action 
but rather manifests itself in support 
or lack of it—back home. So it has 
been with the Western New York 
Fruit Growers’ Cooperative Packing 
Association, Inc. For some time ■ — 
there has been a feeling among mem¬ 
bers, and non-members too, that the overhead 
central costs were too high. In spite of the fact 
that the finances of the Central had been fully 
presented at annual and other meetings and the 
annual budget and special campaign expenses 
had been approved by members through their 
representatives at these meetings, this feeling of 
too high central costs would not down, and 
more and more expressed itself in lack of sup¬ 
port of the organization. It was inevitable that 
the budget be brought into harmony with this 
view of the membership if support was to be 
maintained and growth assured. 
The directors, or executive committee, had 
been aware of the feeling of the members and of 
the necessity of lower costs of unit operation for 
some time. There were two ways to correct the 
situation; cut down expenses to the bone and 
increase the number of cars of fruit handled. 
The Directors adopted both. They first asked 
the management to prune every unnecessary item 
from the budget and this was finally done. They 
next approved of a vigorous and, as the event 
proved, an expensive effort by the management 
to increase membership and put it on a five-year 
basis. This resulted in the establishment of four 
new locals, in doubling the membership in five old 
locals and in slight growth in a few others. This 
growth was, however, more than offset by the 
re- 
N OTHING that has happened among farm organiza¬ 
tions in a long time is more encouraging than the 
drastic overhauling of the Western New York Fruit Grow¬ 
ers’ Association which is explained by M. C. Burritt on this 
page. It will interest not only every fruit grower, but every 
other farmer, whether he is for or against the cooperative 
way of marketing. One of the best things about this ac¬ 
tion was that the demand came from the members and 
was heeded by the directors. 
There are other cooperative organizations that must 
have the same overhauling, the sooner the better, for they 
never can succeed until too expensive overhead is cut 
down. Farming is never a business of big profits. It can 
therefore never support big expenses either in production 
or marketing. It takes real courage to do what the direc¬ 
tors of this packing association have done. It often means 
real injustice, too, to employees who have served faithfully 
and well. But it is sometimes necessary to use the sur¬ 
geon’s knife to save the patient.—The Editors. 
was asked to recommend further budget 
vision. 
There had^already been some discussion of the 
advisability of using Federal instead of State 
grades because of their better standing in the 
markets and because Government inspection at 
shipping point would then be available. Federal 
grading and inspection had been tried out in 
New York with satisfaction by potato growers. 
Inspection could be had for four dollars ($4.00) 
per car. The cost to the association of doing its 
own inspection had been pretty high even in the 
big crop year of 1922, but with reduced tonnage 
of the present season inspection costs would have 
been prohibitive. Hence after conferences with offi¬ 
cials at Washington and Albany and 
. -* the securing of promises that inspection 
could be made available if requested, 
the general manager recommended the 
adoption of Federal grades, and the 
substitution of Government for our 
own inspection system. This meant 
the dropping of three inspectors, 
which would also curtail field work 
with locals and put many operating 
duties back on locals and upon the 
sales force. The directors accepted 
the recommendation and thus effected 
a net saving of $10,000 to $12,000 per 
annum. Whether the organization 
can operate as smoothly and effi¬ 
ciently under the new plan remains 
to be seen. The directors believe that 
it can and will. 
members lacked sufficient confidence in the 
performance of the Central (the pool price in 
particular) to date to sign five-year contracts, 
and lacking it themselves, they failed, of course, 
to inspire confidence in others, together with the 
general feeling that the cost of the Central was 
too high. 
The Problem 
Immediately after the annual meeting in June, 
the directors were faced with the problem of a 
budget for 1924-25. The management presented 
one which, though reduced 15 to 20 per cent, from 
the previous year, was still too high for the 
tonnage in sight. Action was postponed until the 
August 15 crop estimates were in so that a budget 
could be more intelligently determined in relation 
to the tonnage on which it would necessarily have 
to be assessed. Owing to a small crop in what was 
reasonably expected to be a full crop year, the 
crop estimates, instead of showing an expected 
increase in tonnage over 1923-24, showed an 
actual decrease to about one-third of the tonnage 
of the last full crop year of 1922-23. The effort 
to lower unit costs by increasing volume had 
failed. Then it became clear to the directors that 
nothing but the most drastic budget revision 
would keep costs down to a reasonable per¬ 
centage or per car basis. So the management 
Changed Management 
Still the budget remained too high 
for the tonnage to be marketed. 
Because all minor and some major 
economies had already been effected, 
1 — the only further point at which a large 
reduction necessary could be made was 
in the management itself. Expensive manage¬ 
ment can be justified only when it can be spread 
over large enough tonnage so that results can 
be produced in proportion to unit costs. When 
the number of units is so small and the cost 
of management so high that it amounts to 
practically ten dollars or more per car, it is 
almost impossible for any management to show a 
profitable return on itself. In this situation there 
was no alternative. Less costly management 
must be substituted. This was done by releasing 
the general manager and temporarily designating 
President W. J. Hall of Lockport, himself a 
grower and with experience as a local super¬ 
intendent, as acting manager. The chief function 
of a general manager is to say “yes” and “no” 
as occasion requires, and to hold himself available 
for consultation with division heads. With 
experienced men in these positions, such as 
L. S. Benham, Auditor and Office Manager; 
L. E. Waters as Federated Salesman, and Geo. 
Miller in charge of field service, and experienced 
helpers, and a veteran grower at the helm, the 
directors believe that the association is adequately 
equipped to handle the fruit of its members and 
at greatly reduced costs after relatively small 
obligations incurred to date are liquidated as 
they will be this year. The association is now 
(i Continued on page 221) 
