Arizona republican., 1915-10-07
FOR
 MARKET SURVEY

uIIIIbIlGu OOt1UGi
 In connection with the marketing problem, now exciting so much in terest in the valley, the following correspondence from Charles J. Brand. chief of the federal bureau of markets, and from J. L. Nagle, general manager to the California Fruit Exchange, will be of interest Mr Dwight B. Heard,
 President, The Arizona Republican,
 Phoenix, Arizona.
 Dear Mir Heard:
 I wish today merely to acknowl edge the receipt of your letter of September goth. asking if it would he possible to cooperate with the interested parties in your Valley in a study of the marketing problem l am unable to give an offhand re- ply on account of the question of funds, personnel available, etc You know that I am keenly inter ested and will do what I can. Please consider this an acknOwledgemen merely which will be followed up by a more definite statement as soon as I can look into the matter.
 As you probably know, one of my men, MT j. G. Martin. has spent the whole cotton season in Salt River Valley for the past two years assist ing the cotton growers association around Mesa and Tempe. This year on account of the reduced crop, he will make his headquarters in Fl Centro, but will do practically the same work as he has done other years for Salt River Valley.
 Very truly yours,
 CHARLES J. GRAND
 chief
 Sacramento, Cal, Sept. 29, 1915. Dear Sir:
 In acknowledgement of your favor of the goth, re cooperative marketing of California fruit for interstate shipment.
 It has become more apparent each cooperative year of the necessity of a cooperative marketing organization under the control of the producers for the handling and successful disposition of Derishable products, and this is more especially urgent for the protection of m industry whose crops are raised at great distance from their source of consumption as is the case with the fruit industry in California. No argu- ment has ever been advanced detri- mental to the cooperative movement whose principles and policies are in the interest of the producer and where all speculative features have been elemi- mated.
 Cooperation is the product of ne cessity and found an open field in the deciduous industry in California fifteen years ago due to the unsatisfactory conditions under which the industry was laboring being at that time in the control of the commercial interests. Consequently in the winter of 1900 at a state convention of fruit growers the cooperative movement took on con- crete form in what was then known as the California Fresh Fruit Exchange, and in order that you may have some idea of the formation of this organiza- tion which later developed into the California Fruit Exchange, I am en- closing herewith a copy of the history of the fruit industry, which embraces the birth and the formation of our present organization.
 The California Fruit Exchange is an organization, controlled, operated and owned exclusively by fruit growers. In order that we could establish with our banks a basis of credit necessary to handle our business, it was deemed ad- NiSable seven years after our original incorporation to re-incorporate on a capital stock basis. This was done in 1907 at a meeting of fruit growers, of which there were four hundred present, and a reorganization plan adopted on the basis Of S10O,000 capital stock di- vided into 1000 shares of S100 per share with the specific understanding that this stock was to be sold to fruit grow CTS only and affiliated with the Organi l Zation, and with the further under | standing that not in excess of ten shares could be purchased by any | grower or party of growers banded to- | gether. thus precluding the possibility l of the control resting in the hands of | a few. The stock was readily purchased | by those who could spare the money | and today over $56,000 has been sub scribed and paid up.
 Since our reorganization we have paid in dividends to our growers over s35O, GOO divided as follows: 10 per cent | to the stockholders on the face falUe of the stock; Is per cent of the balance of the profits of the seasons business is set aside in a reserve fund.
  which today is equal to S5 per cent of he paid up capital and the balance pro 'ated cn the gross sales of the sndivid- ial, growers, whether they are stock holders or not.
 At present we have somewhere in the of two hundred and fifty and about fifteen to six cen hundred members. These members participate in a certain earning which ccrues from the handling of the busi- less and the only benefit that they do lot receive is the 10 per cent on the tock, which practically means nothing s no stockholder can receive more han S100 on the basis of 10 per cent, ut as a grower may receive $2,000 or nore, which is gauged upon the mag itude of his business. For example, ast season after putting aside the re- erve fund. paying 10 per cent on the | tock, the balance amounted to l F per