Imperial Valley press., 1923-10-18
COOPERATIVE MARKETING OUR NEED


growers of the valley who formed association last
week may be fraught with more Importance than any
of its members can possibly imagine
1t certainly is move in the right direction as eX-
perts who know whereof they speak have repeatedly
contended that Imperial Valley will be at the mercy of
every commercial wind that blows until it markets its
tremendous crops safely and sanely.
The example set by the aggressive citrus raisin
and walnut growers of other parts of the state
is in itself proof of the efficacy of this method of
handling crops.
Before these fruit men banded their efforts and
crops together, many of them lived a hand-to-mouth
existence and the prey of middle men, railroads.
commission agents, and long list of "in-betweens,
each claiming handsome until the grower usually
found himself in debt at the end of the instead
of pocketing profit
Now all this is changed and instead of bowling to
the dictates of Tom, Dick and Harry, the growers
themselves do the dctatngthey practically set their
prices keep the railroads and other carriers with
in bounds and generally determine their own policies
and course of action.
The result is most forciby shown in the recent
s40Oo000 issue of 12 per cent serial bonds just
thorlzed by the Fruit Growers Supply Company.
This a strictly cooperative corporation owned
and operated by the members of the California Fruit
Growers Exchange, numbering 1000 citrus growers
who market about rs per cent of the entire crop of
California under the well-known trade name of Sun
kist.''
At the present time the business transacted by
this company for its members is about s1O,OO0OOO
nually.
Its purpose is to secure for its members ade
quate supply of materials used in producing and
marketing citrus fruits and to insure their purchase at
equitable prices and to in the operation of
mills and box factories incidental to the services
dered.
For the past five calendar years the earnings Of
the company available for interest its funded debt
have averaged S740C00 nearly three times the
maximum annual interest charges on this issue of
bonds.
The new issue of bonds constitutes the sole fund
ed debt of this company 1t will be secured, in the
opinion of counsel by direct first closed mortgage
all of the real property of the company owned
hereafter acquired in Siskyou and Lassen counties
and California and Jackson counties, Oregon. :.
These properties comprise approximately 1000
acres of timber and ranch lands including the standing
timber sawmills box factories, railroads, etc. and
have been appraised by the General Appraisals Com
pany at present deprecated value of or
nearly three times the amount of this bond issue.
The proceeds arrived from the sale of these bonds
will be used by the company to retire its existing
funded indebtedness to reduce current borrowings and
increase It's working capital to complete the purchase
of the Collins tract of timber in Eassen county and
for other corporate such necessary plant
improvements.
1t is evident from the foregoing that the activities
of this cooperative company far reaching extend
ing to supplies to bring the crops to state
of productivity and including even the forests from
which the boxes made and the railroads on which
the timber is hauled to central points
If Imperial Valley growers of lettuce, cantaloupe,
cotton and grapefruit were to form cooperative asso
Citations similar to those in other districts, one could
hardly dare to estimate the amount of permanent pros
perity that would enguf the entire valley.
Instead of being the victims of ever-changlng con-
ditions and fluctuang markets. the farmers would be
assured practical working basis and would market
their crops with knowledge that they would get full
value returned.
The number of acres planted to certain crop
would be controlled insuch that there would
be glutting the market or fields of decayng pro-
ducts left to rot because the market price does not
warrant their picking.
Surely when stops to take account of the val
eys tremendous assets, it absurd that no sue
cessful cooperative system has yet been devised.
Last seasons lettuce crop estimated at 2,441,-
600 crates Figuring price paid here to the
shipper of S137 crate considered very Conservative
gives the startling sum of S3,344 1892.
The approximate number of crates of cantaloupes
shipped out last 028 at average figure of
$1.85 here gives another astounding amount-S7, ,712,
SIG
Fifty-six cars of grapefruit left the valley last
and because of their superior quality brought
the growers $4 box net. Figuring $50 boxes to the
car gives the substantial figure of S80,640
Getting the cotton situation, it estimated that
there $4,000 in cotton this side of the line
this year This should produce 28,000 bales each
weighing 500 pounds Only yesterday the price jumped
again due to storms and havoc wrought by eastern
storms Growers confidently expect cotton to oto 81
cents pound but conservatively compiling the price a.
30 cents gives the total value Of this seasons cottor
crop at S4,2C0000.
Overwhelming figures surely, and massed to
IL ll