Arizona republican., 1921-03-08

will do to your growers when they have you organized
 Don't forget that you can do that legally when the specnlator can only do it on the sneak bryt 1t is just as easy for you to do the right thing in the right manner as 1t has been for him to do the wrong thing iI' the wrong manner; so in starting out any organl- zation we will stick to commodity organization an organization Of cotton growers, long staple cotton growers. and we don't care where they live or where they are except for convenience in the actual technic of the or.ganiza- ton.
 Only Bona Eide Growers
 The second most important thing to bear in mind on cooperative markef- ing is you have got to organize with farmers only, in a real cooperative marketing association. This is not like the American Cotton association that wasn't a marketing association at, a marketing thing in any sense. There mustn't be a single outsider in your organization, only bona fide growers
 Then you have got to be non profit ing and cooperative in character; you ought not have a capital stock organ ization. It is absolutely wrong from a legal standpoint. And it is wrong
 
 have even a semblance of making money off the growers. That is the real great trouble in those whole group of cooperative cultivators in the mid dle west; they have these elevators, they buy wheat from the different growers at different prices; they make profits off those growers. That is not cooperative, it is not a cooperative organization; that is speculation, it is just as speculative whether it is done by farmers or against farmers. You have got to start clean from the ground up. No capital stock in this thing. You can't be hit as a combina- tion, illegal, under the Sherman anti trust act. Don't have capital stock, don't have any of this buying at fixed prices or at any price from any farmer You must confine yourself solely and wholly to marketing cotton for your members, and for your members only, and all on this non profit pool basis. Essence Is Internal Pool The essence of cooperation in Cali fornia is the internal pool. You take an association like the prune growers; l we have 10,S00 members. All those members pool the prunes. They all deliver the prunes to one of the 42 plants of the association. The prunes are all pooled, first, by variety; sec- ond. by size. so many to the pound, l 20 to 30. 80 to 40, 40 to 50. or 50 to 60. | ana so OA. anu lleH DN qudlllY- WllliA the size. There are over 30 pools of prunes alone. What does each man get? He has a proportionate interest in each pool where his prunes are put The association alone has the right to sell.
 The association sells all of them. and gives to each man his proportionate share of the sale proceeds of each i, pool, so that each man gets exactly the same as every other man for the same quantity and quality of product. That is the internal pool Without that you simply have speculation. so | if you are going to proceed right and ] be a non-profit cooperative organi-
 zation, you must have the internal pool. you must handle only the cotton of | your own members. and not single pound of cotton for an outsider and everything on the non-profit basis. l Now, if you are going to organize association of farmers, non-profit and | CO., operative. but it has to be a busi- ness association, it mustn't be one of l those things, you know, to visit the
 sick and bury the dead. It has to be
 a real business association from the 1 ground up.
 Permanency First
 What are the things that make g
 business association different from an, other kind? The first thing you have
 got to organize for permanency. Nc
 one-year stuff, no one-year contract
 If you go in this. you go in to make
 this permanent. You never in you life heard a man to stand up for stool
 in the bank to sign up and have {
 right to pull out in one year. 1t woult
 break the thing in one year to do it
 You can't even get good men to serv'
 you as experts on a one-year basis
 You couldn't get connection with {
 single spinner on earth on one-yeal
 basis. You have got to give a show, guarantee of permanency, long-tim
 arrangement, or don't start at all. So we find that in order to mak,
 that association business-hlxe you mus
 have a long term solid contract witt
 the growers. And it isn't slight con tract YnIl all that paper there