Imperial Valley press., 1923-01-10

| marketing farm products is oEc ol
| the live issues of the day. The
movement is apparently here to stay
and as business men we should un-
derstand its underlying principles
and give what aid we can to the
| farmers who are directly benefited.
Following red ink returns from the
1922 melon crop thoughtful men in
the Imperial Valley concluded that
something was fundamentally wrong
with our distributing system and
have set about finding a remedy.
Speaking generally, the co-operat-
! i've movement was one born of ne
. cessity. This necessity was found
! in the enormous cost of marketing
farm products as compared with the
cost of production and the selling
price to the consumer. Unproduct-
i've middlemen who rendered no SER
vice of value took their toll until
| the farmer received the short end
of the dollar, while the consumer
, found his cost of living steadily in
creasing. After the great war came
! Il sudden decline in the selling price
| of farm products, without any per-
ceptible lowering OF the cost of pro-
duction; and the farmers, morgan
| lied and at the mercy of high freight
rates and manipulated markets,
could not meet the depreciation of
credits and money, which translated
| into values meant that they were
| forced to sell n product raised on a
basis of 81 at about 64 cents.
Farming is Hazardous
Farming at its best is hazardous
business-subject not only to price
uncert ainties and fluctuations, but
also to the calamities and ravages
of nature. A flood, a drought, hail
or storm may destroy within Few
hours the result of years hard
labor.
Also the farmer has had no con.
troll over prices nor the means of
1 regulating in any way what that
price would be. Blindly he has
sown his seed in the springtime
trusting to luck and circumstances
over which he has absolutely NO
control for a price that might give
him a profit. Without the macliin-
cry for marketing his product, he
has been at the mercy of speculat
ors who could hold the product to
meet the equalizing effect of the
law of supply and demand.
1t is not to be wondered at, then
that when the CapperVolstead Act
became federal law in 1929, the
| farmer welcomed the legislation a.
n boon to his movement for cooper
ative marketing.
Quotes Capper Law
The Capper-V olstead Act became
u law on February 1S, 1929. 1t is
entitled "An act to authorize associ
ations of producers of agricultural
products. The first section reads
as follows:
| BE il enacted by the senate and
house of representatives of the
| United States of America in con
gress assembled, That persons en-
! gagged in the production of agricul
tural products as farmers, planter
ranchmen, dairymen, nut or fruit
| growers, may act together in associ
alton, corporate or otherwise, with
or without capital stock, III collect
lively processing, preparing for mar
met, handling, and marketing i'll in
terstate and foreign commerce, such
products of persons so engaged
Such associations may have market
ing agencies in common; and such
associations and their members may
make the necessary contracts and
agreements to effect such purposes
Provided, however, that such associ
atiOns are operated for the mutua
benefit of the members thereof, II,
such producers, and conform to ont
or both of the following require
monts:
First, That no member of tn,
association is allowed more than
one vote because of the amount OF
stock or membership capital he may
own therein, or,
"Seeond, That the association
does not pay dividends on stock OIL
membership capital in excess of
per cent per annum.
"And in any ease to the follow
ing:
Third. That the association
shall not deal in the products of non
members to an amount greater in
value than such as are handled by il
for the members.
Operate for All
The act declares that such associ
ations are operated for the mutua
benefit of the members. This is {
very important declaration, for it de
termines the entire purpose and in
tent of cooperative marketing. To bt
cooperative such an association
must not only conduct its business
for the greatest mutual benefit tC
its members, but must be formed
of producers exclusively, and man
aged by them, and the benefits tt
the members must be returned te
them in proportion to the patrohag,
of each.
Without going into detailed
study of the organization of coop
crative associations and the lepa