Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1927-10-13
EXCHANGE May
ADOPT POOLS
In MARKETING
Plan Favored at Mer-
cedes Meeting; Indi-
vidual Losses to be
Avoided

Especial TO The Heraid.)
| MERCEDES, Oct. ia Valley
wide system of pooling the commod-
tiles marketed by the Rio Grande
Valley Vegetable Growers associa-
tion is expected to be put into ef-
feet this season. At the meeting OF
the exchange, the central body of the
organization, here Wednesday after
noon, the exchange members went on
record as favoring Valley-wide
| pooling system, and voted to recon-
ment this system to their respective
units. The units will hold meetings
during the week and the exchange
will bring the matter to a final
vote Wednesday, October 10.
Each of the twelve local units of
the organization was reported ut the
meeting, and three hours were de-
voted to a discussion of the pooling
problem. All members were in ia
vor of pooling but there was a di-
vision of opinion as to the advis-
ability Of local pools or Valley-wide
pools.
Proponents of the valley-wide
pools pointed out that this system
would assure the same returns to
each unit of the Valley on all COM
modities shipped. Pools will be-
formed for each community and for
each grade of each commodity, and
il is probable that weekly pools
will be formed in that period when
shipments are light and semi-week-
ly pools during the period Of heavy
shipments. The time of the pools
was not discussed, but several Ex-
change members expressed the opin-
ion prior to the meeting that this
would be the most satisfactory basis.
Assures Equable Returns
''The pool system will assure
equable returns to the members Of
the organization" Thomas 0'Neil,
president of the California Veg
etable union, the marketing agency
of the Valley organizations, stated.
1T will virtually be an insurance
against heavy loss by any individual
in the event of a market break"
K. X. Lancaster, marketing ex-
pert OF the extension department,
Texas A & NJ college, who had been
invited to attend the meeting, ex-
pressed the opinion that the pool
ing system should be adopted. "This
will make the organization CO.
operative in every respect" he stat
ed. He commended the exchange up
on the organization that has been
perfected, and predicted that the
unit basis or organization would
prove successful.
"Your organization is different
from any in the state" he added.
"and you are pioneering in a work
that will make history" sHe defined
the pooling system as insurance
| against individual loss, and urged
that the various units adopt il. Mr..
Lancaster will remain in the Valley
the rest of the week and will aid the
central organization and the va
rious units in perfecting their plans
for the marketing season.
Explains Pooling Plan
NJ. r. Hall, representative Of the
California Vegetable Union, who
will handT the Valley deal, was
called upon by J. II. Kirkpatrick, Hi
dalgo county agricultural agent, to
explain the operation of n pool. Mr..
Hall stated that the pools must be
formed for each commodity, and
could last for any length of time de-
sired, but that nest Of the pools with
which his company dealt were
formed weekly. A Valley-wide pool
would include all shipments from all
Valley units for the period Of its ex-
istence, and the returns would be
prorated among the growers upon
the basis Of the average price re-
ceived for the shipments. Each grow
er would receive the same price
for the same grade. He asserted that
at least two grades should be es-
tablished on all commodities moving
in volume, and that each grade
should form another pool. This as
sures an 'equable price TO all grow
ers and those who produce first
grade commodities are paid ae-
cordingiy.
at is immaterial to your market
ing agency whether you form local
pools or Valley-wide POOLS" Mr..
Hall said. If your members deem il
advisable to form a valley-wide pool,
| IL would probably result in some
economy in accounting, and would
assure more equable returns to al
Valley growers"
Proponents of the Valley wide
pool called attention to the fact that
IL local pools are formed there would
be at time n material difference in
| the price received for commodities
Continued on page twol