The Co-operative news. [volume] (Everett, Wash.) 1917-1918, 1917-10-25
CAL. PRODUCERS
TO PURCHASE
COLLECTIVELY
Farmers Form n Cooperative Mar
keting Association Which Will
Help Consumers

SAN FRANCISCO, Cal.-The or
ganization of the foodstuff producers
of California into cooperative mar
keting associations, which has been
effected in the last year or so by
State Market Director Harris Vein
stock, is to be carried one step fur
Their by the formation of state
federation of these associations.
The matter has been worked out
in this way: The cooperative mar
keting associations were formed on
the basis of the crop produced; that
is, the organizations formed were,
for example, the Prune and Apricot
Growers, Poultry Producers of Cen
trail California, California Almond
Growers Exchange, California Asso-
ciated Olive Growers, California
Peach Growers, California Associated
Raisin Company, and the Milk Pro-
ducers of Central California.
These and similar organizations
now are to be brought together in
statewide organization known as the
State Federation of Farmers Coop
erative Marketing Associations, the
purpose of which will be, among 9TH
er things, to practice collective buy
ing of supplies used by all producers
for productive or distributive pur-
poses;- to get through joint effort
financial markets at the worlds
lowest interest rates; and to reduce
further the waste in the cost of dis
tribution.
1t will also be the purpose of the
federation to develop foreign mar
kets by the maintenance of foreign
sales organizations, as we'll as an
all-the-yesr-round sales organization
to operate throughout the American
market; to secure favorable legisla-
ton and tariff changes; and to use
joint endeavor in transportation, adj
vertising. demonstrating and other
>~sA'AsASS SoAAiAioh W pIOuuCcTS anu
producers organizations.
The plan underlying the method of
organization, has some unique fea-
lures in that it provides at once
elements of elasticity and cohesion,
makes it easy for Individual mar
keting associations to enter or leave
the federation, and does not impose
upon the individual association the
financial burden of maintaining any
activities in which it is not directly
interested.
"The organization can be financed
for about $4,000 a year." said Mr..
Forbes, (which is quite remarkable
in consideration of the fact that as
we regard it, the federation will be
able to increase the sale of Califor-
MIA products to the extent of $780,
100000 year. There will be a
central executive council, maintained
by an assessment Of one-thirtieth of
l per cent of the gross business of
the individual associations, and out
of this will be formed various exc
cutive bodies that will handle the
different phases of the federation's
activities, such as banking, foreign
markets, domestic markets, advertis-
ing, legislation, transportation, ETC."
The formation of the individual
cooperative marketing associations
was severely attacked on the ground
that they were in reality food trusts,
but the State Market Director has
maintained that they were in the in
terest of the consumer as we'll as
the producer, because of the econo-
mics in distribution that they brought
about. In this connection the pro-
motors of the new federation say
that it is also in the interest of
the consumer because of its poten-
tial power still further to eliminate
waste in the cost of distribution, as
well as to still further reduce spec
ulation in foodstuffs.