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Un  dee  symboiaa  suivanta  apparattra  sur  la 
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illustrant  la  mtthoda. 


1  2  3 


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(ANSI  and  ISO  TEST  CHMT  No.  2) 


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('16)  2M  -  5989  -  Fox 


.     OTTA.WA,'OilNAl>A. 
BRANCH  OF  THE  DAIRY  iU  COLD  sfORAGB  OOMMISSIOSER. 


■»T^  w  fc*  %rW';.r'»-< 


»"W*   •  «^«c».-*^ 


CO-OPERATION 


IS   THB 


MARKETING  OF  APPLES 


By  A..  McI>rEILI.. 


BULLETIN  No.  18. 


)AIRY  AND  X^OLD  STORAGE  COMMISSIONER'S  SERIES 


PITBLT8HEU  BY  mRKfTK  iN  ( il    THK  Uf>N.  SYDNKY  A 

VTN!STV;i!  <>!     ^■i\        I'tMl   l.'K.    orrAWA. 


MAY,  19.07. 


SJ^"  ^xf^^ 


DEPARTMENT  AGRICULTURE 

OTTAWA,  CANADA. 

BRANCH  OF  THE  DAIRY  AND  COI.U  STORAGE  COMMISSIONER. 


CO-OPERATION 


IX  THK 


MARKETING  OF  APPLES 

By  A.  MclSrEILT.. 


BULLETIN  No.  18. 
DAIRY  AND  COLD  STORAGE  COMMISSIONER'S  SERIES 


PUBLISHED  BY  DIRECTION  OF  THE  HON.  SYDNEY  A.  FISHER, 
MINISTER  OF  AGRICULTURE,  OTTAWA, 


MAY,  1907. 


LETTER  OF  TRAN8I11TTA1. 


1 


Tb«  Honourable 

The  Miniator  of  Agriculture. 

Sir,— I  bex  to  tubmit  Bulletin  No.  18,  Dairy  Mid  Cold  Htorage  CoinmiMioner'ii 
8erie*,  entitled  **  Co-openition  in  the  Marketing  of  Apple*  "  which  h*«  been  prepared  bjr 
Mr.  Alex.  McNeill,  Chief  of  the  Fruit  Division  of  thin  Branch  nf  your  l>epartnieiit. 
The  bulletin  prraenta  a  vary  timely  nubjec^,  and  one  of  much  int«>rett  to  fruit  growen. 
The  sueceM  which  ha«  attended  the  operation*  of  a  nunitierof  co-operative  fruit  grower*' 
aaaooiations,  already  organized  in  Canada,  haa  attracted  comiderable  attention,  and  ha* 
created  a  deaira  for  the  information  which  thix  bulletin  i*  intended  to  supply.  It  i* 
important  that  the  true  principle*  of  coH>p<>ration  nhoulii  be  recogniased,  and  Accepted 
by  thone  who  propoae  to  embark  in  any  enter[>riM  under  Ruvh  auspice*.  The  mere  form 
of  oo-operation  will  not  be  sufficient ;  the  true  spirit  of  the  movement  must  be  present 
in  order  to  ensure  succe«s. 

I  have  the  honour  to  recommend  that  this  bulletin  be  printed  for  genera!  distri> 
butiin. 

I  have  the  honour  to  be,  sir, 

Your  obedient  nervant, 

J.  A.  RUDDICK. 

Dairy  and  Cold  Storage  t'ommi$iiwner. 


1941— 1 J 


CO-OPERATION  IN  THE  MARKETING  OF  APPLES. 


Uy  A.  Mc>N«IU. 


INTRODLCTION. 


C<>-opemtion  U  no  naw  thing  on  CanMli»n  farmt.  The  piontwr*,  Andini;  th*t 
twenty  men  working  together  for  on*  d»y  »t  rla«ring  Und  cmld  Jo  more  work  ♦* . 
one  man  working  alone  for  twent/  dmj;  ooopemted  in  l<>gginK  iie<*«  until  the  no  '  .1.  ' 
for  UMee  pewid.  Thejr  itill  ooofterate  for  threshing  grain,  for  dairy  workan«t  ' 
extent  for  other  purposes.  There  is  n  1  special  virtu*  in  cooperation  ex»<pt  in  •  .a 
lines  of  work.  These  lines,  however,  Canadian  farment  do  not  quickly  r*cuKniz«.  They 
apply  co-operative  atp' .  •  is  to  souie  extent  in  batter  and  cliet>M-  inakinK,  but  not  to  tli* 
production  of  bacon,  C-  ugh  one  cannot  see  any  fundamental  r^aaon  for  the  diff)«rt>nci>. 
The  Dane*,  our  greatest  ooropetitors  in  butter  and  baoon,  oo-o(ierat«  with  great  auceess 
in  the  production  of  both.  In  both  industries  there  exisU  the  neceiuiity  for  larger 
i|uar/ities  of  the  finished  product  of  a  uniform  grade,  and  also  the  ne<-fiisity  for  greater 
economy  in  production. 

It  would  be  interesting  but  irrelevant  at  this  time  to  enquire  why  tlH>se  necessities 
were  met  in  Canada  largelv  by  a  semi  co-opertitive  ay*t4im  for  cheese  making  and  for 
the  production  of  bacon  by  a  factory  system,  owned  and  managed  excluiiively  by 
capitaiista  in  no  way  engaged  in  the  production  of  the  raw  material.  It  is  worthy  of 
note  that  both  systems  are  developing  in  the  apple  iuduxtry  as  the  result  of  a  slight 
difference  of  conditions  in  'liffereot  parts  of  the  country.  The  mont  important  Mature 
of  the  new  development  is  a  central  packing  houi-.  system.  In  some  eas**  capitalists 
own  and  manage  central  packing  hous*-^.  though  they  are  in  no  way  engaged  in  the 
production  of  the  f -uit. 

The  purely  co-operative  apple  packing  imti  selling  as.  >tions  in  Canada  had  their 
iii-igin  in  the  southwestern  portion  of  the  province  of  Ontai  tnd  inasmuch  as  the  appli- 
cation of  the  co-operative  method  came  in  the  wa  '  of  a  na.dral  development,  arising  out 
of  the  condition  of  the  industry  in  that  sect'-n  -f  Mu  country,  a  brief  reference  to  the 
origin  and  progress  of  apole  growing  in  Cauu  la  and  the  varying  oonditionx  «»f  the 
market  for  Canadian  apples,  dur.  ;  the  pa.il  <)■■.  v  y»«r«,  in  necessary  if  the  circum- 
stances attending  the  origin  of  the  ••«*  ^iationi<  an-  'o  i>e  properly  understood. 


XVVhV.  Ct'LTlRE  IX  ONTARIO. 

Forty  years  ago  the  Ontario  farmer  found  a  ready  sale  for  the  fruit  grown  in  his 
orchard  in  the  local  markets,  and  no  part  of  the  farm  yielded  a  more  profitable  return 
for  the  money  and  labour  expended.  As  new  settlers  came  into  the  province  they 
adopted  the  common  practice  of  setting  out  trees,  and  eventually  the  planting  of  an 
orchard  in  the  establishment  of  a  farm  became  as  much  a  matter  of  course  a.s  the 
clearing  of  the  land  or  the  erection  of  farm  buildings.  The  varieties  to  be  grown  were 
selected  with  a  view  to  covering  the  entire  season  ranged  from  early  harvest  to  late 
winter.  A  few  novelties  were  almost  always  added  at  the  instigation  of  tree  agents, 
whose  methods  were  frequently  open  to  question.  The  result  was  a  great  admixture 
luid  confusion  of  varieties  but  nevertheless  ther-  wa*  an  orchard  planted  on  every  farm. 

In  this  manner  originated  during  a  qnarV  .  of  a  century,  the  numerous  small  orch- 
ards that  aggregate  today  from  6,000,000  to  7,000,000  bearing  trees  in  Houthem  and 


Western  Ontario.  The  v«rietiefi  were  not  selected  with  care  nor  were  the  interests  of 
the  individual  owners  sufficiently  important  to  encourage  them  to  become  experts  in 
apple  growing.  Natural  conditions,  on  the  other  hand,  were  very  favourable ;  insects 
and  fungous  diseases  were  at  first  not  numerous  ;  and  as  long  a<  the  local  market  absorb- 
ed the  entire  product,  the  multiplicity  of  varieties  was  found  to  be  an  advantage.  About 
the  years  1865-1870,  however,  the  pressure  of  over-production  began  to  be  felt,  and  in 
the  following  five  years  apples  became  almost  wholly  valueless,  especially  in  the  thou- 
sands of  orchards  that  were  somewhat  remote  from  the  larger  cities. 

BEOINXIXG  OF  THK   EXPORT  TRADE. 

It  was  at  this  juncture  that  th^  export  trade  in  Canadian  applet,  which  now  aggre- 
gates from  $4,000,0<X)  to  :$5,000,000  in  value  annually,  began.  The  price  received  was 
at  first  very  low,  but  the  cheap  fruit  was  quickly  intro<luced  into  the  British  market, 
where  it  was  classed  with  American  apples  and  found  ready  sale.  In.  a  short  time  the 
tra-le  became  firmly  established,  and  the  buying  of  apples  in  Canada  for  the  British 
market,  became  a  regular  business  with  a  large  number  of  fruit  dealers.  The  apples  in 
the  first  few  years  of  the  trade,  were  bought  in  barrels  ready  for  the  market.  The  in- 
experience of  the  farmer  in  the  (grading  and  packing  of  the  fruit,  however,  and  the  dif- 
ficulty of  inspecting  a  large  number  of  small  lots,  led  eventually  to  a  change  in  the  method 
of  buying.  Henceforwr.  '.-d  the  buyer  bought  the  apples  on  the  trees  and  organized 
gangs  of  packers  who  proceeded  from  orchard  to  orchard  picking  and  packing  as  they 
went.  The  farmer  at  first  furnished  board  and  lodging  for  these  gangs  and  often  did 
the  picking  ;  of  late  years  this  in  many  cases  has  been  discontinued. 

RFMULT^OF  THE  EXPORT  TRADK. 

The  immediate  result  of  the  establishment  of  a  profitable  export  trade  in  apples 
was  that  the  orchard  again  became  a  very  profitable  portion  of  the  farm.  New  plant- 
ings began  to  be  made,  more  especially  along  the  Northern  shore  of  Lake  Ontario  and 
on  the  shores  of  the  Georgian  Bay.  These  orchardists,  profiting  by  the  experience  of 
their  predecessors,  exercised  greater  care  in  the  selection  of  varieties,  the  industry  being 
directed  almost  entirely  with  reference  to  the  foreign  market.  The  number  of  varieties 
was  limited  in  most  instances  to  three  or  four,  while  at  the  same  time  the  average  acre- 
age of  orchards  was  increased  from  three  or  four  to  plantations  of  ten,  twenty  or  even 
thirty  acres.  As  the  new  orchards  came  into  bearing,  it  naturally  happened  that  the 
more  accessible  foreign  markets  began  to  feel  the  pressure  of  tl  a  increased  supply.  The 
result  was  that  when  the  phenomenal  Canadian  and  American  crop  of  1 896  was  put  on 
the  market  the  demand  was  again  n^ore  than  supplied  ;  once  more  apple  prices  in  Can- 
ada fell  80  low  that  little  or  no  margin  of  profit  remained  for  the  grower,  and  thousands 
of  barrels  in  the  year  named  were  fed  to  stock  or  allowed  to  rot  under  the  trees. 


THE  DECLINE  OF  PRICES. 

The  extent  of  the  waste  of  apples  in  1896  and  succeeding  years  will  be  appreciated 
when  it  is  stated  that  the  apple  yield  of  the  Province  of  Ontario  was,  on  the  authority 
of  the  Ontario  Bureau  of  Statistics,  placed  over  12,300,000  barrels  in  the  year  1900  : 
the  exports  from  the  entire  Dominion  for  the  same  year  were  678,651  barrels,  and  as 
'  it  is  hardly  probable  that  more  than  4,000,000  barrels  were  consumed  locally,  a  total  of 
over  7,620,000  is  left  to  be  accounted  for.  Doubtless  the  most  of  these  were  entirely 
wasted.  A  feature  of  the  situation  which  it  is  important  to  note,  however,  was  that 
the  waste  of  fruit  was  by  no  means  evenly  distributed  over  the  Province,  but  was  con- 
fined largely  to  the  older  orchards.  The  reason  for  this  was  not  that  the  fruit  of  the 
older  orchards  was  poorer  in  quality,  or  the  yield  mvh  less  abundant,  but  that  the 
methods  of  harvesting  and  selling  the  crop  were  too  expensive  to  enable  the  owners  to 
maintain  the  contest  with  their  competitors  who  owned  newer  orchards.     As  a  result, 


repaUble  buyers  praeticaliy  abandone<i  all  except  very  limited  portions  of  Soathem  and 
Western  Ontario,  except  in  years  of  scarcity.  The  field  wan  given  over  instead  to  irre- 
sponsible buyers  whose  method  was  frequently  to  secure  the  <-onfidpnce  of  the  growers 
during  one  season  and  defraud  them  in  the  following  year,  many  having  in  this  way 
taken  from  a  few  hundred  to  thousands  uf  dollars  out  of  a  single  neighbourhciod.  It  is 
not  a  matter  of  wonder  that  many  farmers  chopped  down  their  orchanls,  though  for  the 
most  pal  t  wiser  counsels  prevailed. 

INtJUIRY  INTO  SITlfATION. 

An  earnest  inquiry  was  made  at  this  juncture  by  both  governmental  and  ])rivate 
authorities  to  determine  why  orchard  planting  should  go  on  with  vigour  in  one  part 
of  the  province,  while  in  other  parts  orchards  were  being  chopped  down.  The  con- 
clusion reached  was  that  the  requiremente  of  the  foreign  market  wer»>  being  met  by  the 
newer  and  larger  orchards,  where  the  industry  was  in  consequence  profitable,  whereas 
it  was  impossible  to  fulfil  these  conditions  in  the  older  and  smaller  plantations. 

The  most  important  requirements  for  successful  catering  to  the  foreign  demand 
were  found  to  be  four  in  number,  namely  : — 

1.  Large  lots  of  fruit 

2.  Few  varieties. 

3.  Uniform  packing,  grading  and  niarkin<r. 

4.  The  employment  of  skilled  labour. 


aYSTKMH  OF  PACKING  AND  SELLING. 

To  meet  these  conditions  a  variety  of  methods  are  in  rogue  for  each  of  which  some- 
thing may  be  said. 

(1.)  The  grower  of  the  fruit  may  pick,  pack  and  sell  on  his  own  account. 

(2.)  The  grower  sells  on  the  tree,  the  buyer  doing  the  picking  and  packing. 

(3.)  The  grower  sells,  picking  the  fruit,  the  buyer  doing  the  packing. 

The  selling  may  be  "  by  the  lump  "  or  at  a  price  per  barrel  with  a  level  price  for 
1st  and  2nd,  or  a  different  price  for  each  grade. 

The  first  method  does  not  enable  a  sutticienl  .[uantity  of  fruit  to  be  gathered  U> 
inipiess  the  market.  The  expense  of  securing  a  suitable  market  is  considerable  and  is 
almost  as  much  for  a  small  quantity  as  for  a  large,  and  there  is  no  opportunity  of 
securing  uniformity  tor  larger  lots.     This  metluxl  is  largely  confined  to  the  local  market. 

The  second  and  third  methods  permit  a  larger  quantity  of  fruit  lieing  gathered 
under  one  brand  with  some  degree  of  uniformity.  But  the  cost  of  doing  so  is  excessive 
and  must  ultimately  be  borne  by  the  grower. 

The  men  employed  in  apple  picking  are  hiretl  for  only  a  tew  weeks  annually,  and 
it  can  be  readily  understood  that  high  wages  and  indifferent  services  frequently  prevail. 
It  is  not  uncommon  for  a  single  buyer  to  have  ten  or  fifteen  gangs.  It  i.s  a88erte<i  that 
a  well  known  operator  employed  at  one  time  70  gangs  working  hundreds  of  miles  apart. 
A  proper  supervision  under  ^^uch  circumstances  is  impossible.  As  a  result  time  and 
money  are  wasted  partly  as  a  necessary  result  of  the  methods  of  working,  partly  as  the 
result  of  the  class  of  help  obtainable  which  cannot  be  trusted  except  under  close  super 
vision. 

In  1904  many  thousands  of  barrels  of  apples  were  bought  at  fifty  cents  per  barrel, 
whereas  it  frequently  cost  no  less  than  forty-five  cents  per  barrel  bo  pick  and  pack  the 
same  apples.  ■      ■       -      l 

In  1005  and  1906  prices  for  apple*  wei-e  lii-her  but  there  was  n<>  re<luction  m  the 
cost  of  packing.  It  is  asserted  too  by  the  buyers,  that  where  the  apples  were  bought 
by  the  barrel,  the  growers  either  by  cajolery  or  bribery  induced  the  packers  to  put  in 
many  inferior  apples  to  increase  the  number  of  barrels. 

In  the  older  orchards  in  which  varieties  covering  the  whole  season  were  grown,  it 
was  also  found  impossible  to  %4sit  the  orchards  at  the  intervals  necessary  to  pick  and 


paek  the  diffisrent  vkneties  at  the  proper  stage  of  maturity.  A  heavy  source  of  loaa,  in 
Mmaequenoe,  was  the  waste  which  resulted  from  picking  apples  either  before  or  after 
they  were  matured,  or  in  allowing  them  to  gu  to  waste  entirely.  It  not  unfrequently 
haf^ns  too  that  the  buyer  through  failure  to  barrel  promptly,  and  leaving  the  fruit 
expoeed  to  sun  and  frost,  caused  a  partial  or  total  loss.  Generally  the  grower  is  the 
immediate  loser.  In  a  very  few  cases  does  the  average  farmer  have  an  agreement  so 
drawn  as  to  cover  these  points  and  if  he  does  secure  judgment,  the  buyer  too  often  has 
no  assets  upon  which  he  cau  levy. 

The  method  of  selling  '  liy  the  lump '  is  very  unfair  to  the  grower,  inasmuch  as  the 
buyer  is  likely  to  be  very  skilful  from  long  practice  in  estimating  the  quantity  of  fruit 
in  an  orohard.  The  buyer  and  seller  are  thus  not  dealing  on  equal  terms.  In  the  few 
cases  whero  a  grower  gets  moro  than  the  orchard  is  worth  he  is  in  the  dishonourable 
position  of  receiving  money  for  which  he  has  given  no  equivalent 

Lump  buying  is  also  responsible  for  having  placed  upon  the  market  an  exceedingly 
poor  grade  of  apple.  As  has  been  pointed  out  frequently  the  average  buyer  has  poor 
fiicilities  for  disposing  of  his  culls  and  lower  grades.  The  temptation,  therefore,  is  very 
strong — too  strong  to  be  resisted  in  many  cases — to  include  inferior  apples  with  the 
better  grades,  and  to  pack  eveirthing  in  the  orchard  with  the  hope  of  getting  some 
price  for  the  poorer  qualities.  But  inspectors  under  Uie  Fruit  M&rks  Act,  have  fre- 
quently drawn  attention  to  the  fact,  that  the  packages  upon  which  they  are  obliged  to 
make  an  adverse  report  were  very  frequently  from  these  lump  orchards. 

It  is  said  by  the  buyers  that  sometimes  when  the  orchard  is  bought  by  the  lump 
the  growers  are  very  careless  of  the  fruit  after  the  sale.  Stock  are  allowed  to  break 
in  and  eat  all  the  fruit  in  their  reach.  No  precautions  are  taken  against  theft,  if  it  is 
not  actually  invited,  nor  can  the  buyers  depend  in  all  cases  on  proper  protection  in  case 
of  frost  or  other  contingency.  Of  course  the  buyer  is  the  loser  in  these  particular  cases 
but  he  provides  for  this  in  the  average  price  he  gives.  The  losses  therefore  in  the  last 
aoalysis  do  not  fall  altogether  upon  those  who  are  responsible  for  thetii.  but  upon  the 
whole  body  of  apple  irrowers  who  sell  in  this  way. 

SELLING  BY  THE  BARREL. 

In  selling  by  the  barrel  the  grower  is  often  defrauded  by  a  very  simple  device  on 
the  part  of  the  packer  if  he  does  not  do  his  own  picking  and  packing.  The  packer  will 
set  a  very  high  standard  for  his  No.  I's  with  the  result  that  the  grower  will  find  pro- 
bably not  more  than  ten  per  cent  of  his  orchard  product  graded  No.  1.  The  staudard 
of  the  No.  2's  will  also  be  high,  making  a  large  percentage  of  culls.  The  bargain  as 
understood  by  the  grower,  presumed  the  ordinary  grading  ;  but  there  being  no  written 
contract,  the  buyer  usually  has  his  own  way.  Of  course  the  presumption  is  that  these 
apples  are  afterwards  re-niarkod,  but  if  not,  they  are  sent  to  special  customers  where 
their  extra  quality  will  secure  an  extra  price. 

On  the  other  hand  buyers  are  sometimes  deceived  by  their  own  packers.  These 
packers  by  personal  friendship  or  by  direct  bribery  are  induced  by  the  grower  to  put  in 
a  poorer  quality  of  fruit  than  the  grade  would  call  for.  There  is  no  possibility  of  a  pro- 
per inspection  by  the  buyer  in  most  cases,  and  these  packages  go  forward  to  the  market 
bearing  the  buyer's  brand  that  are  nevertheless  fraudulently  marked  by  his  subordinate 
The  fraudulent  nature  of  the  marking  is  not  discovered  until  it  is  too  late  to  punish  the 
perpetrator  of  the  offence  even  if  it  were  possible  to  identify  him.  The  variou  packs 
are  mixed  in  such  a  way  that  it  is  not  often  that  the  individual  workman  can  oe  pro- 
perly identified.  It  will  thus  be  seen  that  the  method  of  buying  apples  is  a  hazardous 
one  both  for  the  buyer  and  the  seller  and  should  be  replaced  by  something  better. 


CO-OPERATION  AND  THE  FRUIT  MERCHANT. 

In  a  great  many  cases  the  co-operative  associations  have  been  vigorously  assailed 
by  the  apple  buyers,  and  in  some  cases  by  the  commission  merehants.  It  is  taken  for 
granted  that  the  co-operative  associations  will  eliminate  the  middleman.     This  is  only 


partially  true.  Cooperative  auocialions  will  reduce  the  nnmber  of  midcUemen  undoulii- 
edty.  Tbit  is  in  the  interest  both  of  the  grower  and  the  legitimate  fruit  merchant. 
The  middleman  who  will  be  dispensed  with  is  in  n»oet  cases  unneceiwary  to  the  legiti- 
mate fruit  merchant,  as  well  a*  to  the  grower.  The  ctM>perative  associations  do  not  aim 
to  sell  to  the  consumer  direct.  They  appreciate  the  fact  that  there  is  an  absolute 
necessity  for  the  fruit  merchant  to  come  in  direct  conUct  with  the  consumer.  Their 
only  object  is  to  reach  this  fruit  merchant  as  directly  as  possible.  This  direct  selling 
will  undoubtedly  prove  a  very  great  benefit  to  grower*,  merchants  and  consumers.  A 
secondary  object  of  the  so-operative  association  is  undoubtedly  to  prevent  an  unscru- 
pulous buyer  from  playing  off  one  wea'j  kneed  grower  against  his  neighbour  for  the 
purpose  of  lowering  the  price  of  the  fruit  below  its  actual  value. 


THE  VALUE  OF  A  GUARANTEE. 

Confidence  in  the  uniformity  and  honesty  of  the  quality  and  grading  of  the  fruit  is 
the  baais  of  sucoesaful  trade.  The  buyer  must  he  perfectly  confident  that  the  box  which 
he  is  getting  is  exactly  as  the  m'irkings  upon  the  outside  would  indicate,  and  the 
package  should  be  so  marked  that  it  would  describe  accurately  the  fruit  which  it  con- 
tains. It  should  also  have  marks  to  indicate  whether  the  packer  or  the  shipper  was  to 
blame.  It  is  of  course  distinctly  understood  that  where  the  fruit  is  not  as  represented 
for  any  reason,  the  association  will  make  good.  A  guarant  e  of  this  kind  that  is  faith- 
fully  carried  out  will  require  of  course  protection  on  the  part  of  the  association.  They 
will  have  to  adopt  devices  against  unscrupulous  buyers  who  may  make  false  reports. 
Wherever  it  is  possible  a  trusted  individual  makes  personal  examination.  Where  that 
is  not  poswble  the  fruit  is  Uken  out  of  the  hands  of  the  person  complaining,  immediately 
and  completely,  even  where  it  is  sol^  for  less  than  the  person  complaining  is  willing  to 
give  for  it.  By  making  this  rule,  trivial  complaints  are  not  likely  to  be  made.  Until 
the  brand  becomes  well  known  it  is  certainly  a  goo<l  advertising  device  to  place  a  slip 
in  each  package  stating  clearly  the  association's  guarantee.  These  slips  may  in  all  such 
oases  carry  the  number  of  the  packer  as  well. 

SELLINQ  BY  COMMISSION. 

There  are  different  methods  of  selling  fruit.  Tu.  petlshable  nature  of  fruit  and  the 
uncertainty  in  the  quantity  and  in  the  quality  of  it  until  it  is  packed  ready  for  market, 
makes  it  very  difficult  to  sell  except  by  consignment.  Consigning  fruit  is  a  necessa'-y 
evil  as  the  fruit  trade  is  organized  at  the  present  time.  One  of  the  objects  of  organiza- 
tion among  fruit  growers,  is  to  do  away  with  this  method  of  selling  except  to  a  very 
limited  degree.  It  is  perfectly  true  that  there  are  many  reputable  commission  mer- 
chants whose  record  for  fair  dealing  ib  unimi  eachable.  On  the  other  hand,  there  is 
scarcely  a  fruit  grower  in  business!  to-day  who  has  not  8uffere<l  severely  in  consequence 
of  too  great  a  trust  in  the  commission  business.  It  is  absolutely  impossible  for  llie 
average  fruitgrower  to  tell  whether  he  has  been  dealt  with  fa-ly  or  not.  He  cannot 
audit  the  accounta  nor  folbwh's  fruit  to  the  next  purchaser,  and  he  ts  practically 
obliged  to  take  the  word  of  the  commission  man  for  all  facts  connected  with  the  sale  of 
his  fruit.  He  says  in  fact  to  the  commission  man,  here  is  my  fruit,  give  me  what 
you  please  for  it.  It  would  be  strange  indeed  if  some  commission  men  did  not  yield  to 
the  tempUtion  and  sen  1  returns  far  below  what  was  received  for  the  fruit.  It  is  not  a 
question  of  the  responsibility  of  the  commission  merchant.  His  standing  may  be  high 
m  financial  circles,  but  if  he  wishes  to  be  dishonest  he  need  not  want  for  a  plausible 
excuse  to  return  almost  any  sum  to  the  grower.  The  first  device  is  to  report  the  fru  t 
arriving  in  bad  condition.  This  is  usually  accompanied  by  a  request  for  instructions 
how  to  deal  with  the  fruit  The  fruit  grower  hundrefls  of  miles  away  and  exceedingly 
busy  with  the  remainder  of  the  crop,  can  only  reply,  do  the  liest  you  can  with  it.  Not 
unfrequently  the  commission  merchant  even  reports  that  the  sales  did  not  equal  the 
charges  and  asks  the  fruit  grower  to  remit  a  further  amount 

1941—2 


10 

But  preBumiog  that  tha  commiasion  man  ii  perfectly  honest  and  haa  done  hU  best 
with  the  trait,  the  syttem  ia  yet  a  very  bad  one.  There  is  no  regulation  of  the  amount 
of  fruit  which  is  shipped  to  any  partiouUr  point.  There  may  be  twice  or  three  times  as 
much  fruit  as  the  market  can  absorb  at  profitable  prices,  yet  the  commission  merchant 
is  obliged  to  lower  his  price  until  his  sales  take  place. 

The  evils  are  still  worse  where  the  commission  merchant  also  buys  upon  his  own 
account.  Then  he  is  sure  to  push  his  own  goods  first  and  hold  the  goods  sold  on  com- 
mission for  the  poorer  market,  probably  after  it  has  seriously  deteriorated  by  the  delay 
in  selling. 

Another  evil  has  been  frequently  commented  upon.  Qooda  on  consignment  can  be 
used  very  effectively  to  undermine  the  trade  of  a  competitor  not  in  the  same  combination 
with  the  commission  merchant.  It  frequently  happens  that  a  stranger  appears  in  the 
dty  with  a  few  car  loads  of  fruit  which  he  endeavours  to  sell.  This  uf  course  is  an 
invasion  of  the  territory  of  the  merchants  already  established  there.  But  if  they  were 
obliged  to  meet  the  competition  of  this  new  comer  with  their  own  goods,  they  might 
hesitate  before  they  lowered  the  price  so  as  not  to  yield  a  profit  But  where  they  have 
goods  on  consignment  they  have  no  hesitation  in  forcing  this  upon  the  market  with  the 
object  of  lowering  the  price  below  the  legiiimate  point  upon  the  newcomer's  fruit. 

These  evils  idone  would  be  sufficient  to  condemn  sales  upon  consignment.  All  these 
evils  are  intensified  where  the  sales  are  made  by  auction.  In  such  cases  not  unfre- 
quently  there  is  an  easy  combination  of  buyers  that  limits  the  price  so  as  to  give  them 
an  unwarranted  profit  on  their  sales. 

SELLING  BY  TENDER. 

Selling  by  tender  is  an  excellent  plan  after  a  reputation  has  been  established.  This 
plan  is  adopteid  by  the  Hood  River  (Oregon)  Apple  Growers'  Union,  and  also  by  some 
of  the  Ontario  associations.  This  method  is  only  possible  where  the  organization  is 
fairly  perfect  The  manager  must  know  very  definitely  the  quantity  of  fruit  which  he 
has  for  sale,  and  the  quality  of  it  Of  course  this  would  be  impossible  without  very 
stringent  rules,  both  as  to  the  growing  of  the  fruit  and  the  celling  of  it.  It  is  reported 
that  the  Hood  River  people  selling  by  this  method  have  been  able  to  raise  the  price  of 
their  apples  from  eighty  cents  per  box  to  |2.00  per  box. 

It  takes  a  number  of  years  to  secure  an  organization  as  well  as  a  reputation,  conse- 
quently this  is  probably  not  the  best  method  of  selling  fur  new  organizations. 

DIRECT  BUYING. 

Whatever  method  of  disposing  of  the  stock  is  adopted,  it  miy  be  taken  for  grcnted 
that  the  only  safe  way  is  to  sell  at  the  point  of  production. 

A  more  serious  defect  of  all  these  methods  is  that  the  interest  of  the  buyer  in  an 
orchard  does  not  continue  from  year  to  year  and  does  not  begin  early  enough  in  the 
season  to  permit  him  to  improve  the  crop  in  any  way. 

The  methods  of  harvesting  and  selling  account  in  some  degree  for  the  want  of 
improvement  in  orchard  culture  in  all  its  branches.  This  want  of  improvement  is  of 
course  intimately  associated  with  small  profits.  Indeed  so  small  have  been  the  returns 
from  certain  sections  of  the  country  that  in  years  of  low  prices,  thousands  of  bushels  of 
good  apples,  and  thoM  that  might  have  been  good  with  proper  care,  have  been  allowed 
to  go  to  waste. 


INTRODUCTION  OF  THE  CO-OPERATIVE  METHOD. 

It  was  with  the  object  of  providing  at  least  a  partial  remedy  for  the  eWls  abow 
referred  to  that  the  cooperative  method  of  selling  apples  was  first  adopted.  The  experi- 
ment has  been  to  a  certain  extent  successful.  In  Ontario  the  original  purpose  of  organi- 
lation  was  for  the  combining  of  a  number  of  small  lots  of  fall  apples  into  car  lots  for 
shipment  with  the  object  of  securing  thereby  a  reduction  in  freight  charges.     Each 


11 


member  of  the  originiil  associations  graded  and  packed  his  own  apples,  while  the  selling 
was  entrusted  to  one  wf  the  membsrs  having  a  business  connection  in  Western  Cunada, 
or  some  of  the  large  commercial  centres.  Tlie  adaption  of  this  method  was  the  raeana 
undoubtedly  of  securing  a  considerable  saving  to  the  producer,  but  it  was  only  a  ])artial 
remefly,  and  related  only  to  one  of  many  evils,  namely,  ii  high  freight  rate.  Among  the 
disadvantages  which  it  failed  to  mitigate  were,  a  lack  of  uniformity  in  grading  that 
militated  against  good  prices,  and  the  absence  of  general  interest  among  fruit  gowers 
and  of  incentive  to  secure  many  (puch  needcl  improvements.  It  wus  dei-ided  therefore 
by  the  pioneers  of  the  movement  to  obUin  more  formal  organization  and  added  definite- 
ness  of  aim  by  incorporation.  It  was  found  in  the  case  of  Ontario,  where  the  movement 
for  oo-opei-ation  originated,  tnat  legislation  auBiciontly  comprehensive  in  character  to 
meet  the  needs  of  the  situation  was  ali-eady  on  the  statute  books  of  the  province  in  the 
form  of  an  Act  passed  in  1900  to  provide  for  the  incorporation  of  co-operative  cold 
storage  associations,  and  up  to  the  present  time  no  additional  legislation  has  been  sought 
with  the  exception  of  cme  or  two  amendments  to  the  Act  passed  during  the  present 
year  to  secure  its  adaptation  to  the  requirements  of  the  developed  form  of  the  asaoci- 
fttion. 

COOPERATION  IN  PACKING. 

It  is  proposed  to  Bubititute  for  the  ordinary  methods  mentione<l  alwve,  co-operation 
in  packing  as  well  as  selling,  and  incidentally  in  any  other  phase  of  apple  growing  that 
will  lend  itself  readily  to  this  mode  of  operatii/n.  The  following  advantages  will  be 
gained  by  the  adoption  of  co-operation  ; — 

(1)  Large  stocks  will  be  controlled  by  sellers  who  will  act  as  a  unit. 

(2)  Uniform  packing,  grading  and  marking  will  be  prHCticed. 

(3)  A  reputation  associated  with  a  permanent  brand  or  trade  mark  will  Ix!  estab- 

lished. 

(4^  The  cost  of  picking,  packing  and  marketinj?  will  be  reduced. 

{H)  Fruit  will  be  picked  and  packed  at  the  proper  time. 

(6)  Less  -jommon  varieties  will  be  utilized. 

(7)  Storing  facilities  will  be  better  provided  for. 

(8)  Direct  selling  at  the  point  of  production  will  be  encouraged. 

(9)  Packages  will  be  bought  in  large  quiiiitities  or  manufactured  on  the  premises 

with  a  material  reduction  in  cost. 

(10)  The  placing  of  the  purely  commercial  i>art  of  the  industrj'  in  the  hands  of 

competent  men  whose  interestn  are  connecte<l  with  those  of  other  members 
of  the  associiition. 

(1 1)  Spraying  by  power  outfit.,  co-operatively,  wi  1  in  most  cases  be  adopted. 

(12)  The  manager  and  the  better  growers  among  the  patrons  will  have  every 
inducement  to  stimulate  the  less  progressive  members  to  better  work. 

LARGE  QUANTITIES. 

The  influence  of  what  merchants  call  "  long  lines  "  is  seldom  appreciated  by  the 
producer.  The  cost  of  selling  is  almost  as  great  for  a  smali  quantity  of  produce  as  for 
a  large  ;  but  the  commission  on  a  hundred  barrels  is  ten  times  the  commission  ten 
barrels.     It  is  easy  to  see  the  incentives  that  prompt  merchants  to  look  for  lo  38 

of  goods.  Again  the  large  quantities  give  a  c.istomer  a  choice.  It  also  gi  he 
merehant  an  opportunity  to  sell  upon  sample.  Nothing  oifei-s  a  greater  hinderance  to 
■ales  than  new  or  unknown  brands.  ReUilers  are  obliged  to  make  an  individual 
explanation  for  each  sale  in  such  cases. 

UNIFORMITY  IN  PACKING  AND  GRADING. 

Of  course  the  value  of  large  stocks  is  lost  if  the  sample  is  not  perfectly  uniform 
throughout.  Hence  the  necessity  of  having  apples  not  only  in  large  quantities,  but  uni- 
formly packed  and  graded.  This  can  be  secured  only  by  co-operation,  when  the  fruit  ia 
grown  in  small  orchards. 


IS 

BEPUTATION. 

With  large  qoantitiea  of  any  particular  article  nniformlj  marked  and  packed,  a 
reputation  ia  very  soon  e^tablighed,  and  even  if  the  quality  ia  not  the  highcut  it  will 
secure  a  price  much  above  small  luto  that  are  not  uniformly  even,  though  of  higher 
quality  tlian  the  other.  Under  the  co-operative  method  there  i«  every  incentive  to  main- 
tain this  uniformity  in  packing  and  grading,  and  to  belter  it  if  possible.  Under  the 
ordinary  system  of  buying  and  selling,  the  whole  machinery  of  commerce  from  the  trrf> 
to  the  markets,  offers  inducementH  for  fraudulent  packing  and  marking.  The  managt . 
of  a  CO  operative  concern  ia  personally  intereated  in  securing  the  uniformity  of  marking 
and  packing.  But  of  more  importance  than  this,  is  the  fact  that  he  has  the  power  by 
means  of  the  central  packing  house  system  and  a  direct  personal  oversight  of  all  the 
work  of  the  packers  to  enforce  uniformity,  not  only  for  a  single  season,  but  from  year 
to  year.  It  is  not  too  much  to  say  that  the  extraordinary  prices  procured  by  the  grower* 
on  the  Pacific  coast,  is  the  result  largely  of  a  reputation  for  perfect  uniformity  in  grade 
and  marking.  It  must  be  added  at  once,  however,  that  the  only  grade  shipped  is  that 
of  practically  perfect  fruit ;  but  the  quality  of  it  tested  either  by  the  eye  or  by  the  pal- 
ate i8  certainly  not  better  than  the  aame  grade  giown  in  the  eaat  If  there  were  no 
other  inducementa  than  simply  the  aeouring  and  preaervation  of  a  reputation  for  a  brand, 
oo-operation  would  justify  itaelf. 

ECONOMIKS  IN  HARVESTING. 

The  history  of  Canadian  orchards  presents  hundreda  of  examples  of  wasted  fruit, 
because  the  varieties  were  not  grown  in  sufficiently  large  quantities  to  pay  for  picking 
and  packing  at  the  proper  time  by  the  ordinary  methods .  For  year&  the  Red  Astra- 
ohan.  Duchess,  Oolverts  and  Jennetings  have  been  allowed  to  go  to  waste  in  nearly 
every  orchard  in  western  Ontaria  It  would  be  too  much  to  say  ttat  the  only  reason 
for  this  was  want  of  organization  ;  but  it  ia  well  within  the  mark  to  say  that  organlxa- 
tion  in  co-operative  societies  would  have  made  it  possible  years  ago  to  harvest  these 
varieties  at  a  profit.  During  the  seasons  of  1904,  190IS  and  1906,  the  Fruit  Division  baa 
received  numerous  letters  from  growers  of  these  earlier  varieties  complaining  that  they 
could  find  no  market  for  their  fruit  at  a  profitable  price.  During  the  same  seasons  tha 
cooperative  societies  in  Chatham,  Foreat  and  Walkerton  were  selling  these  varieties  for 
a  price,  all  things  considered,  equal  to  the  best  winter  varieties.  One  large  grower 
having  from  two  to  three  thous"  id  barrels  of  Duchess  for  sale  says,  that  he  has  never 
found  any  difficulty  in  selling  his  output  at  good  prices.  All  these  facts  emphasize  the 
importance  of  the  economies  which  can  be  practiced  by  dealing  with  large  quantities. 
Even  the  less  common  varieties  of  summer  and  winter  fruit  become  under  the  co-opera- 
tive system  a  marketable  product. 

ECONOMIES  IN  PACKAGES. 

Following  directly  up  n  co-operation  in  selling,  comes  co-operation  in  bujdng  pack- 
ages. Packages  form  a  very  i.^portant  part  of  the  fruit  business.  The  coet  of  these  is 
often  twenty  per  cent  and  even  twenty  five  per  cent  of  the  value  of  the  fruit  which  they 
contain.  It  is  therefore  of  the  utmost  importance  that  every  economy  in  connection 
with  tli<!se  should  be  practiced.  The  co-operative  methods  enable  these  to  be  produced 
at  a  minimum  cost;  the  quantities  needed  can  bo  more  accurately  estimated  ;  the  orders 
can  be  given  earlier  in  the  season ;  both  these  considerations  are  conducive  to  the  in- 
terests of  the  cooper.  He  can  buy  his  stock  in  the  beat  market,  can  keep  his  men  em- 
ployed for  longer  periods  during  the  year,  and,  perhaps  more  important  still,  he  can  rely 
upon  the  contracts  which  he  makes  with  these  associations. 

STORING  FACILITIES. 


It  must  be  taken  as  a  fundamental  prineiple  in  the  production  of  apples,  that  each 
variety  should  be  harvested  and  placed  on  the  market  when  it  is  mature.     This,  how- 


13 

ever,  muit  l>e  iD<xliHi<<l  U^  the  exti'iit  of  siiyin;*  that  <)iiiisi..njilly  it  is  dpNirablc  to  hold 
for  a  few  iIuvh  in  the  caso  of  early  uiiil  full  fruit  ;  iimi  it  is  ilt'siruhic  t4>  hold  winter  fruit 
M«  aH  to  supply  tho  miirkot  as  lat«'  as  p<»isibl.'.  It  is  tlK'n-fort-  with  no  thought  of  hold 
ing  early  varieties  for  lonj{  pt-riods,  that  stoit  houses  arc  su^jgest*-*!.  Nevertheleiut  largi- 
«iuantities  of  fruit  cannot  Ix-  projM-riy  asscnililiNl  iiml  preimrt-d  for  shipment  without 
storehouses  and  packing  sheds  involving  tli.  ,  \prniiiture  of  comparatively  large 
amounts  of  capital.  Thi'sf  storehousos  and  packing  sheds  have  not  been  provided  at 
the  points  of  shipments  under  the  present  system  of  buying  and  selling  apples;  and  it  is 
fair  to  assume  there  never  will  W',  notwiihstiinding  the  imp  prtJinco  of  such  buildingD. 
The  matter  becomes  easy  under  the  uo-operative  system.  It  is  one  of  the  best  evidences 
of  the  permanency  of  this  co-(i()ertttive  movemcnl,  that  we  can  point  to  excellent  store- 
houses and  jMicking  shcti  in  the  case  of  all  older  ass<K-iatii)ns  ;  and  it  can  be  taken  for 
granted  that  ample  storing  facilities  will  be  a  feuture  of  every  one  of  the  succewfal 
associations. 

SELLING  AT  THK  POINT  OK  I'KODUCTION. 

Closely  connected  with  this  matter  of  storehouses  is  the  very  important  one  of 
selling  at  the  point  of  pnxluction.  Too  much  cannot  be  said  for  this  method  of  doina 
business.  It  is  desirable  both  for  the  grower  and  for  the  fruit  merchant.  That  it  has 
not  been  adopted  in  Canada  is  solely  the  fault  of  the  pnHlucer.  The  fruit  merchant 
cannot  be  expected  to  travel  long  di-tances  involving  large  expense,  upon  the  mere 
chance  of  getting  something  that  will  suit  his  trade.  He  must  have  a  certainty  of  large 
quantities  of  uniformly  gra<led  g(X)ds,  packed  in  standard  ]>Hckages,  de>i;;nated  by  thor- 
oughly reliable  grade  mark.s.  These  cannot  be  furnished  under  the  present  system  of 
apple  selling.  It  can  be  accomplished  by  co-operative  methods.  Already  more  than 
half  the  co-operative  associations  .sell  their  entire  product  directly  from  the  packing 
houses,  receiving  the  cash  before  the  g<«Kls  are  shipped.  Fruit  is  bo  j.erishable  in  its 
character  that  it  becomes  necessary  t<j  deal  with  it  on  a  somewhat  different  basis  from 
ordinary  staple  commwlities.  If  fruit  is  movwl  from  the  original  jMi.king  hou.se  with- 
out a  definite  agreement  as  to  the  price  of  it,  the  shipper  is  at  the  mercy  of  the  con- 
signee. It  cannot  be  held  at  the  market  end,  and  in  very  few  cases  can  the  represen- 
tations of  the  dealer  to  whom  it  is  consigned  be  etVoctively  examined  ;  the  shipj^r  has 
simply  to  accept  whate\er  the  seller  remits.  Hence  the  necessity  of  having  all  ques- 
tions of  price  and  quality  .si'ttled  before  the  goo<ls  leave  the  s}iii)ping  station,  because  it 
•  is  only  then  that  buyer  and  .seller  are  acting  ujion  teiiiis<  if  equality.  At  that  point  the 
seller  can  accept  or  refuse  an  offer  without  jfsipaidizing  the  condition  of  his  fruit.  The 
buyer  is  ecjually  free  to  accept  or  refuse  an  offer  without  running  risks  with  reference 
to  quality  and  condition.  The  coojierative  metluMl  promi.ses  to  make  possible  the  sale 
of  apples  at  the  point  of  protluctioii,  a  reform  which  will  enable  apples  to  be  placed  be- 
fore the  consumer  at  a  very  great  reduction  in  price. 

UTILIZlNd  TIIK  BKST  BUSIXKSS  .\BILITV  AMONG  THE  GROWERS. 

It  is  a  matter  of  common  observation  that  ability  \arying  in  character  is  developed 
to  a  very  different  degree  in  different  men.  It  is  baying  much  in  favour  of  co-operative 
methods  that  we  can  utilize  the  highest  ability  of  each  man  in  his  special  line.  The 
ability  to  grow  excellent  fruit  may  not  be  associated  with  the  ability  to  sell  it ;  and  it 
is  quite  iwssible  the  contrary  of  this  is  true.  A  co  ofK^rative  organization  enables  the 
man  with  the  ability  to  sell  fruit  and  to  manage  >)usines»  concerns,  to  take  charge  of  the 
business  end  of  apple  growing,  ieauug  ti.e  others  skilled  in  the  growing  of  fruit  to 
follow  their  bent.  This  may  not  seem  important  at  first  si^ht,  but  a  careful  survey  of 
the  apple  industry  shows  that  there  is  a  marked  deficiency  in  business  methods  of  the 
growers.  In  *.w  industries  are  all  rules  of  the  commercial  world  so  persistently 
ignored.  It  is  not  too  much  to  say  that  i)ne  ot  the  chief  benefits  of  the  co-oper««ive 
movement  will  be  to  place  the  business  men  among  the  apple  growers  at  the  head  of 
the  concerns. 

1911-3 


u 


TH«  INFLUKKCR  OF  THR  MANAGER. 

Tliiit  confiiHnration  shuuld  be  one  of  th«  itrongeal  inducamenU  for  ecM>perAtion. 
Ita  value  in  uertainly  undereitiniated  if  not  altogether  overlooked. 

It  hat  often  beun  pointed  out  that  under  the  preient  syitem  of  buying  and  Millittg, 
the  buyer  h«8  no  incentive  to  improve  the  product  of  the  individual  grower.  There  iH 
only  a  remote  possibility  of  hie  buying  the  ume  orchard  two  yean  in  succewion 
becauiM;  hiii  inducements  do  not  bind  the  orcbardi«tR  to  him  pemonally.  If  he  did 
Hecure  any  improvement  either  by  advice,  the  inveatroent  of  money,  or  in  any  other 
way,  none  of  the  advantaged  would  accrue  to  him.  He  therefore  does  nothing  to 
improve  methodH,  although  from  hia  petition  as  a  middleman,  he  is  frequently  most 
competent  to  give  useful  information.  Not  so  with  the  manager  of  the  co-operative 
association.  In  most  cases  he  pouesses  not  only  the  best  business  ability,  including 
the  same  information  as  the  ordinary  apple  operator,  but  at  the  same  time  he  in  a 
thorough  fruit  grower.  Unlike  the  buyer  he  has  a  direct  interest  in  the  improvement 
of  the  fruit  and  therefore  he  takes  advantage  of  every  opportunity  to  induce  his  patrons 
to  improve  their  methods.  His  reputation  as  a  manager  is  at  stake  and  it  is  therefore 
reasonable  to  suppose  that  the  ability  which  placed  him  at  the  head  of  the  association 
will  be  exercised  to  improve  the  product  of  the  organization.  His  patrons  remain  with 
him  from  year  to  year.  Of  necesHity  he  suffers  from  the  mistakes  of  eu<  h,  but  the 
nature  of  the  business  makes  it  necessary  for  him  to  meet  them  frequently,  j,'iving  him 
ample  opportunity  to  admonish  and  advise  on  the  defects  noticed. 

INFLUENCE   OF   THE    BETfER   GKUWERa 

The  manager  will  not  be  alone  in  striving  to  improve  the  product  of  his  individual 
patrons.  He  will  have  the  help  of  his  best  patrons  in  the  general  improvement  of  all. 
The  reputation  of  the  fruit  and  the  price  following  it  depends  in  the  last  analysis  upon 
its  quality.  If  therefore,  the  patrons  who  grow  good  fruit  can  improve  the  quality  of 
their  neighbours'  fruit,  they  ai  e  directly  benefiting  themselves,  which,  considered  with  the 
fact  that  they  are  benefiting  their  neighbours,  becomes  a  powerful  incentive  towards  the 
improvement  of  the  product.  It  is  not  remarkable,  therefore,  that  there  has  been  a 
very  great  improvement  in  the  fruit  grown  by  the  members  of  the  co-operative  associa- 
tions already  established. 

The  benefits  which  have  accrued  to  the  dairy  interests  by  the  adoption  of  co-ope- 
rative methods  have  often  been  cited.  Although  it  is  true  that  Canadian  dairymen 
have  in  a  very  large  number  of  instances  indeed  departed  from  the  true  co-operative 
principles,  they  have  adopted  the  best  methods  of  these  principles  in  the  factory 
system  of  making  butter  and  cheese. 


FRUIT   AND   DAIRY   PRODUCTS. 

Co-operation  in  apple  packing  corresponds  to  cheese  and  butter  making  by  the 
factory  system,  and  it  may  be  reasonably  expected  that  the  name  benefit  will  follow  its 
adoption.  Indeed  the  apple  and  dairy  industries  have  so  many  things  in  common  that 
the  analogy  becomes  almost  an  identity.  Both  industries  are  incidents  of  the  system  of 
mixed  farming  likely  to  be  followed  in  Canada.  It  is  hardly  conceivable  that  milk  will 
be  produced  at  one  point  in  large  quantities  on  a  scale  comparable  to  the  manufactures 
of  wood  and  iron.  Ten,  twenty  or  even  thirty  cows  to  the  farm  may  be  kept  with 
profit.  More  than  this  will  require  a  rare  combination  of  skill  and  favourable  conditions 
to  yield  a  dividend.  It  is  equally  certain  that  the  small  apple  orchard  of  five  or  ten 
acres  will  be  the  rule  in  this  country,  although  it  must  be  conceded  that  the  large 
orchard  is  more  likely  to  be  successful  than  the  very  large  dairy.  In  both  industries 
the  individual  interests  in  the  raw  material  are  likely  to  be  small,  and  producers,  there- 
fore,  cannot  profitably  fellow  their  finished  product  to  a  distant  market.  There  is  then 
an  equally  strong  incentive  in  each  industry  for  co-operation,  whiuh  has  been  acted  on 
in  the  case  of  dairy  products  but  only  to  a  small  extent  in  the  apple  industry. 


IS 


COOPKRATION   IN   OTHKR   UNWi 

The  co-opemtion  movement  cannot  he  stopped  wmply  »t  the  wiling  point.  It  will 
ejcten.1  certainly  to  nearly  all  the  work  oonnwsted  with  apple  prcluction.  It  hiw  alre.uly 
developed  in  the  direction  of  co-operative  .prayini,'.  «M»perative  pailunB  and  the  itorwiK 
of  appleTa.  weU  a.  the  cooperative  buying  of  packages  It  w  thertfore  conhdent  y  to 
be  expected  that  where  coK)peration  in  the  apple  induHry  has  proved  »ucceH»fu  .  it 
will  be  a  comparatively  easy  matter  to  Introduce  coK)nerative  method*  m  other  linMi. 
There  U  8till  much  to  be  done  in  perfecting  the  coHjperative  lyHtcm  in  connection  with 
dairying.  The  poultry  industry  is  one  that  might  be  develope.1  to  enormous  proportions 
in  Ontario,  in  connection  with  fruit  growing  and  dairy  interests  ;  and  yet  it  is  alnimt 
impossible  that  the  poultry  industry  can  succeed  except  by  the  introduction  of  co-ope- 
rative method,  in  the  selling  of  poultry  producU,  as  well  as  in  the  deve  opment  of 
poultry  stock.  Having  developed  the  true  cooperative  spirit  in  the«!  branthes  of  farm 
work  where  cooperation  in  comparatively  easy,  we  may  then  hope  for  cooperative 
methods  in  baton  production  with  the  certainty  of  great  improvement  m  the  quiility  of 
the  product  as  well  as  in  the  profits  to  the  farmer. 

VALUE  OF  OROANIZATION. 

The  successful  nrrhanlist  that  always  sells  better  than  his  neighbour,  sonietiiiios 
hesitates  to  throw  in  his  lot  with  his  less  progressive  neighbtmr.  He  feels  that  by 
avei»King  with  such  he  is  lowering  the  price  to  himself.  Huch  is  not  often  the  cas,.. 
As  a  matter  of  fact,  his  less  progresMve  neighbour  by  hU  want  of  knowlclge  of  markets 
and  possibly  of  the  relative  merite  of  hU  own  products,  is  an  ea*y  victim  for  the  shp^wcl 
buveWwid  sells  his  output  often  below  the  market  value.  After  a  few  actual  deals  of 
this  kind  have  been  closed,  it  is  almost  impossible  for  the  best  sellew  to  realize  proj^er 
prices.  Every  well  informed  grower  has  had  experiences  of  this  kind  whi^h  erophwize 
the  fact  that  he  only  w  .y  to  secure  proper  prices,  U  to  place  the  selling  of  the  whole 
as  far  as  possible  in  the  hands  of  skilled  salesmen.  Thus  the  growers  who  lack  the 
commercial  instinct  are  protected  from  the  wily  ways  of  the  apple  buyer,  and  the  best 
salesman  will  be  able  to  improve  his  prices. 

The  members  of  the  cooperative  association  in  Ontario  sold  the  greater  portion  of 
tl  -i  crop  for  1906  at  $-2.2^  per  barrel.  Many  of  the  outside  growers  did  not  succeed 
in  selling  their  eariier  varieties  at  all,  and  on  any  sales  they  did  make,  they  did  not 
secure  more  than  »l  per  barrel,  the  equivalent  of  «1.50  free  on  board.  One  apple 
buyer  reiK)rted  that  he  had  secured  two  thousand  barrels  in  Southern  Ontario  at  titty 
cents  per  barrel.  The  only  explanation  for  this  is  want  of  orguni/atioii  among  the 
growers. 

OKGAN'IZING  AN  ASSOCIATION. 

To  or"iinize  an  association  is  a  comparatively  simple  matter.  Tt  is  exi»-cte.t  of 
course  tliut  tlie  whole  subject  has  been  tliscuased  in  the  neighbouriiood  and  that  tl..- 
exixxliencv  of  organizin-  is  conoede<l.  In  such  cases  a  preliminary  meeting'  is  usually 
held  for  tiie  purpose  of  selecting  officials.  The  officers  that  are  usually  ap})ointe<l  are  a 
president,  vice-president.  secreUry  and  treasurer,  together  with  five  or  more  dirw.tors. 
Sometimej  the  office  of  secretary  and  treasurer  is  combined  It  w.l.  b.-  foun.l  better, 
liowever,  to  combine  the  office  of  secretary  and  manager.  It  is  desirable  that  all  the 
officers  should  command  the  confidence  of  their  fellow  fruit  growei-s.  Perhaps  the  most 
difficult  office  to  fill  would  be  that  of  manager,  nevertheless  it  is  a  nmtter  of  exp«'nen.e 
that  men  who  have  made  a  success  of  their  own  business  by  generous  metluKls  (  <>  not 
fail  when  they  are  placed  in  ehaige  of  a  cooperative  as«.tiaUf.n.  ll.ivinjt  rlr.-ulcd  uj.ui. 
the  officers,  the  next  step  is  to  secure  incorporation.  The  exact  steps  f..r  this  purpose 
will  he  somewhat  diflerent  in  each  province.  The  secretary  should  write  to  the  Pio- 
viiuial  Department  of  Agriculture  asking  for  information  with  reference  to  the  incor- 
poration of  apple  sellers'  associations,  and  he  will  receive  full  instructions  how  to 
proceed      In  British  Columbia  incorporation  will  probably  be  under  the  Agricultural 


1< 

•ml  Hortifultoml  8oi-i..ty'«  Art.  In  OiiUrio  the  tV<^n»tive  Cold  Ht-.r»K..  A«.K-i» 
ti.Mi  n  Act  will  hf  Avnilablc  TTM-n.  in  m>  nin-i-M  Act  f(ir  auch  mH-wfutt  in  tlie  Maritiiii.. 
Pn.vinc*. ;  but  the  OeiM-nil  Htock  Company  Corjiomtlim  Act  will  ever  the  citxe  thi.uuh 
the  fws  are  Ui'Ker  than  in  thn  cuwt  lif  Ontario  and  Hritish  dlunihia. 

In  the  appenilix  will  be  fijoml  Mimpleii  of  coniititutiont  and  r.y  Uwi  luiUble  for 
th«org«niMtionof  c.M)r«r»tive  aMoeiatioM.  Of  coune  In  all  caM«  tho  cnuitution 
and  by-law.  mu«t  1)0  in  accordance  with  the  Act  under  which  the  aM<i<iatl.>n  i«  incr- 
porated.  With  thii  limitation  the  proviaionit  of  the  constitution  and  bylawN  may  vary 
to  Ruit  the  ciicuniiitunceR  of  cuch  particular  case.  In  Ontario  in*»t  i.f  the  co-operative 
aDiM«iation>  have  n  constitution  and  by-lawn  similar  to  that  of  the  Forent  Fruitffrowera 
and  Forwarding  AMociation  which  is  given  in  tl.B  appi>ndix.  It  will  be  noted  that  the 
by-lawn  n  thin  case  anticipate  trade  in  apples  only.  Tlie  conntitution  and  by  lawM  of 
the  K  owna  AHsociation  of  Hritish  Columbia,  given  also  in  the  upfiendix,  will  furnirli 
hintu  >n  the  case  .  f  afsociations  that  may  with  to  handle  seneral  prwJu  ce.  The  appen- 
dix alROContainK  the  oonstituiion  and  by  lawi  of  the  Island  and  (lypsum  Fruit CompiuiV 
of  Ohio.  ThU  will  exemplify  the  methods  of  a  very  suooesdul  company  hwidlinrall 
claiMes  of  fruit,  but  more  enpecially  peachea  and  grapes. 

Of  course  where  the  bu.iiaess  is  small  it  is  quite  possible  t«  ship  and  sell  co-opera- 
tively without  incorporation  if  the  menibert  have  perfect  confidence  in  each  other  and 
in  their  manager.  It  may  be  expedient  sometime*  to  delay  incorporation  until  such 
time  as  a  larger  business  would  warrant  it. 

Tho  advantages  of  incorporation  are  evident.  Until  the  association  is  incorporated 
some  one  member  must  be  legally  responsible  for  all  obligations  connected  with  the 
business  but  may  not  legally  be  able  to  get  the  uxual  compensations  that  go  with  such 
rewlonsibihty.  A  claim  for  bri-ach  of  contract  or  for  damages  might  arise  through  no 
fault  of  the  one  who  took  the  responsibility.  He  would  not  only  have  to  go  u>  the 
expense  of  defending  the  suit,  but  also  would  have  to  depend  on  the  generosity  of  his 
associHtea  for  reimbursement.  The  risk  is  not  great  when  the  business  is  small  and  all 
the  iiKMiilien  well  known  to  each  other.  Incor(H>ration,  however,  cosU  nothing  practi- 
cally, and  places  the  responsibility  where  it  bolongs,  on  all  in  proportion  to  tho  l>enetiu 


GENKHAL  PUINCIPLES. 


Divisio.v  OP  PKurrrs. 

N..  dividends  on  8t<jck  greater  than  the  rate  at  which  moiipv  could  be  UirrowiKh 
shou!.!  I..'  paid.  This  is  only  another  way  of  Hayin;u'  that  tho  ass.K;iation  should  hi- 
jmn-ly  c.  ojierative.  All  money  received  should  be  piiid  out  to  the  shareholders  in  nro- 
IK.iti.m  to  the  fruit  shipped  by  each,  less  the  actual  exjienses  iiiounwl  in  opeiatina  the 
association.  A  concrete  example  will  illustrat*  the  justice  of  the  principle  Two 
growers  have  each  one  share  of  stock.  One  ships  one  hundred  barrels  of  pples  the 
other  a  thousand  Wrrtis,  bringing  . qual  prices.  The  a.ssociati.in  makes  a  char.-e,  let  us 
say,  of  lo  cents  jk^t  barrel  f..r  Nellin-;,  but  the  actual  cost  is  found  to  bo  only  10  There 
will  thus  l)e  a  surplus  fi-om  the  shii.inentsof  the.two  men  of  h  cents  [mt  barrel  or  a  total 
..?  #.J5.  If  it  is  divided  according  to  st.sk,  that  is  if  dividend;  are  de<l.ned,  then  each 
fieU  Jj-JT.  This  would  \h-  a  inanit'e.st  injustice  to  the  shipper  of  the  thousand  barn-Is 
He         ;ld  receive  ^.)()  and  the  other  shipper  ?.">. 

••etimes  the  excuse  is  made  that  mure  capital  is  ie.|uir«"d  than  can  Ik>  conveniently 
rais<  sto«k  among  growers,  and  that  outeide  capital  can  l«  most  easily  secure*!  bv 

selling  shares  to  non  grower,.  This  is  a  mistake.  Outside  capital  cannot  U- indu<<'d 
to  invest  in  co-operative  assiKiation  st.K:k,  and  sliouhl  not  be  pxf)ected  to,  except  on  the 
promise  of  dividends.  If  these  dividt-i.ds  never  excee<l  the  usual  ir.terest  on  iiionev 
then  there  is  no  injustice  done.  But  it  is  the  history  of  associations  having  such  share- 
holders that  sooner  or  later  they  join  forces  with  the  fruit  growers  in  the  c  -<jpany  who-e 
shareholders'  intereste  are  larger  than  their  fruit  interest,  and  gain  cont.  ,i  to  manage 


17 

•II  the  opMktfoM  to  bmIm  diTidaads.  Whra  thk  oMvn,  «ll  or  iMsriy  all  UwdifcM 
moMj  adrMUmm  of  o»o|>r-*Uv«  MioototioM  aeorvo  to  tho  eopiuliat  and  not  to  tho 
fruitgrowtr  aa  n  ihovld. 

If  onUida  oapital  ia  iwedeil,  it  ia  batUr  to  Meora  it  on  tha  eradit  ol  tha  aianoiitinn 
and  iu  anati,  paying  for  it  at  tba  regular  rate  of  interest,  which  will  appear  in  tha 
aoooanta  aa  one  of  tlia  espeuaae  <rf  managing  the  aaaociation. 

Banliera  naaalljr  prenr  to  make  loitni  on  tha  peraonal  notea  of  the  director*,  who 
have  the  management  of  aifair*  in  their  hand*  and  can  thua  protect  themaelvea  from 


Ail  nemben  aluMild  be  bound  to  ahip  their  fruit  through  the  aaaooiatioa  Th: - 
■My  be  done  in  two  waya.  Firat,  by  having  a  clauae  in  the  oonatitution,  or  by  lawt 
binding  the  memtierBhip  to  that  no  hUx  can  lie  made  except  by  tha  auMciation,  and 
Moond,  by  a  apeoial  contrao'.  '^he  binding  oliiu«e  iho'ild  be  inserted  in  the  by-lawa 
of  every  aiaociation,  even  mUva  it  ia  deemed  expedient  to  um  the  i|  oial  contract  The 
lattar  ia  aomawhat  more  eaailr  enforoed,  bat  ia  apt  to  be  neglected.  The  contract 
alanaa  in  tha  by-law  eatAbliahed  tha  principle  and  mrmberahip  will  imply  the  contract. 

Too  much  Btreaa  cannot  be  laid  on  tha  value  of  tha  contract.  WiUiout  it  the  mana- 
gar  does  not  koow  what  he  haa  to  aaU.  Ha  ia  not  aafe  in  arranging  for  aalca  ahead,  aa 
ha  may  not  be  able  to  fill  his  oontr^t.  Thia  naoertainty  would  deprive  the  asaooiation 
of  the  great  advantage  of  arranging  with  the  beat  cUaa  of  onatomers  in  advance. 

The  oontraot  ia  neoeaaory  Moauae  of  the  many  influeiioaa  that  will  be  brought  to 
bear  to  divert  the  fruit  of  members  into  the  hsndt  of  outside  operators.  Therr  -  < 
many  men  who  derive  very  large  incomes  by  levying  toll  for  small  aervtcea  betweeu  .  .^ 
growent  and  the  regular  fruit  merohanta.  auch  men  vill  offer  extra  inducementa,  aueh 
aa  a  price  above  what  tha  market  would  warrant,  for  the  purpoae  of  introducing  dia- 
cord  into  the  aMociatioa  and  breaking  it  up  if  powiblo.  In  Nova  Soutia  it  ia  said  that 
the  co-operative  movement  haa  been  greatly  impedeJ  by  agent*  for  transportation  oom- 
panir  i  and  Britiah  aolling  firms.  These  men  get  a  rebate  on  all  fruit  that  they  can 
divert  to  particular  steamship  lines  and  selling  agent«,  and  naturally  do  not  like  to  loue 
thia  income  as  they  moat  certainly  would  if  co-operative  prir  iples  were  adopted.  In 
Ontario  the  apple  buyers  I  ave  so  long  enjoyed  a  revenue  from  this  industry  for  a  few 
weeks  work  each  year,  that  any  invasion  of  the  selliag  end  of  the  apple  busineks  by  the 
cooperative  association,  looks  to  them  like  a  destruction  of  vested  interests.  For  want 
of  the  contract  clause  tome  of  the  Ontario  associations  saw  some  of  their  best  grower* 
dispose  of  their  fruit  oubtide  of  thf  organization.  Some  of  these  found  out  later  in  the 
season  that  they  did  not  get  as  good  a  price  as  they  could  have  secured  through  the 
asaooiation.  In  some  cases  they  individually  got  slightly  more.  But  if  the  association 
should  be  broken  up,  the  little  advantage  they  get  lliis  seaiion  will  be  lost  many  times 
over  in  succeeding  years.  It  is  not  even  guo<i  business  to  desert  a  co-operativp  associa- 
tion having  once  joined.  Neither  is  it  honourable,  inasmuch  iis  the  losses  in  the  aggre- 
gate to  all  the  members  may  be  many  times  the  gain  to  the  deserter. 

IDRETIB8. 

For  officers  and  directors,  choose  only  men  whom  you  cao  trust.  Officers  such  as 
the  treasurer,  or  the  manager  who  have  the  handling  of  large  sums  of  money  will  in- 
spire confidence  by  insi»ting  on  giving  the  usual  sureties  whether  the  patroH'i  aik  for 
this  or  not.  There  are  few  positions  of  trust  in  the  business  world  where  such  a  guar- 
antee is  not  required,  if  the  a-ssociation  does  not  take  guarantees  from  o  ...side  parties, 
it  must  be  prepared  to  take  the  risk  itself.  This  can  be  done  in  most  cases  with  safety 
and  economy.  The  value  of  the  personal  element  in  the  case  can  be  estimated  more  ao- 
ourately  by  the  auociation  than  by  the  outside  company. 

AUDITINO. 

In  all  cases  and  under  all  circumstances  there  should  be  the  most  careful  auditing 
of  the  work  by  competent  auditors.     Every  mem  tier  of  an  association  should  try  to 


u 


ihteHMfeiiiiltervilhthcdataikddlwbwlMK    HctiMMldi 
iImI  bookkMpiBff  and  tkt  MidlUB|  of  book*  to  m  bmIi  »  piohwloa  i 
Thorrforo  wboilMr  ia  kto  MtiiMtioa  tho  books  mo  rifh»  or  wraag,  bo 
bi»  Jw^pMftt  tUl  il  to  eoaOrmod  by  mb  ol  aWUij  who  h*f«  maA  it 
•uaiiiM  iato  tbo  ooiTMtooM  of  boek& 


ibor,  bowovar. 

•a  trail  growiaf . 

bo  tbootd  withboTd 

tboir  boainoM  to 


oo-onmtnn  BOoiBianiM^ 

Co-oponttvo  bookkeopiaf  doea  aot  difbr  in  fiBonl  priaoiptoa  fron  buokkeapirg  <if 
aay  othar  kind.  Manj  •aaoolation*,  howo<rir,  will  botr*  ita  bookkeaping  done  hj  th(M« 
wbo  havo  had  littlo  oxparianeo  in  bookkcopiag  inrolving  the  intareaia  ci  othcn  than 
tbamaelvea.  To  auck  it  may  bo  vM  that  oforr  Balorial  iaot  skookl  bo  a  mattor  of 
roeord.  CVwtraota  ahoold  bo  in  wriUnit.  V«ml  agraamoata  ahonkl  bo  coaflnnod  by 
lottora.  Ab  ontry  ahoold  bo  nado  immadiataly  of  money  paid  and  raeeiyed.  Raooipta 
noting  axaot  aoMXinta  or  quantitiaa  abovM  bo  takon  and  givoa  for  money  or  produce 
iotarehaagr'  Wbenoror  a  traaaaotioa  to  at  all  oomplieatod  a  written  aUtement  of 
all  the  faeta  aboald  be  on  rooord  in  addition  to  the  bare  entriaa  in  the  regular  aoeoonta. 

It  will  nanally  be  fband  that  mnoh  time  toiaToti  and  more  iattofacto^  work  to  done 
by  baring  printed  forma  for  reoaipta,  Rtock  IbU,  paoking  Uble  rooorda,  etc.  In  the  cnao 
of  raooipta  for  fruit  they  may  bn  padd«d  lo  that  a  oarbon  panar  between  two  leavoa 
will  giro  daplieatea,  one  of  whieh  can  be  died  at  the  oOeo  and  tho  other  given  to  the 
pa..OB. 

It  will  OBoally  pay  an  aaaooUtion  to  consult  an  aspart  aecouptant  who  w*ll  aogftet 
booka  and  forma  to  auit  the  apectol  needa  of  the  oinnmatanoea.  Each  aia  oiationnaa 
aooMthing  peoaliar  in  ita  mode  of  working  that  needa  a  special  proriaion,  but  no  drvice 
will  take  the  place  ol  conaoientiona  eareinlneas  on  the  part  of  the  bookkeeper  and  a 
record  of  all  material  facta. 


APPENDICES. 


SI 


APPENDIX  1 


■    The  following  Ctwjperative  AssocUtions  were  in  successful  operation  during  the 
season  of  1906  : — 

ONTAKIO  CO-OPKRATIVE  ASSOCIATIONS. 


N(une  of  AMOciatiun.  Nanw  of  SecreUry  or  M»na((rr. 

VMut  I«nibt»n  Fruit  Giowers'  Awiciation W.  J.  S»-yiuour. 

Belleville  Apple  «rowet»'  Co-oiwrntivi-  AMOciatioii. .  F.  S.  Wallbridge,  Belleville. 

Brant  Packing  Association F.  M.  Lewis.  Burfonl. 

Bruce  Fniit  ( Jrowers'  Association A.  E.  Sherrington,  Walkerton. 

Bui'gesBville  Packing  Company 3.  B.  Wallace,  Uurgessville. 

Burlington  Fruit  (Jrowers'  Association Clarence  Kmigh,  Burlington. 

CmadUn  Apple  Kx|X)rters,  LimitiKl W.  H.  Denipsy,  TrenUm. 

Chatham  Fruit  Growers'  Ass.«iation \V.  I».  A   Ross,  Cliatliaui. 

Dunwick  Cooperative  Association K.  Caniplirll,  Cownl. 

Forest  Fruit  Growers' and  Forwarding  Association.  .U.  Johnson,  Forest. 

Georgetoii-n  Co-oiierative  Association F.  .1.  Barter,  C-orKit'.wn. 

Grimsby  Fruit  (Jrowem',  Limited f.  D-  Biggar,  Grimsby. 

Ilderton  Fruit  Growers'  Association K.  T.  Caverhill,   I  van. 

Newcastle  Fruit  (iroiiers'  and  Forwarding  Asuocia- 

jjo„ W.  H.  Gibson.  Newcastle. 

Meaford  Fruit  (Jrowers'  Association l>r.  .1.  I).  Hamill.  Meaford. 

Norfolk  Fruit  Glowers'  Association    .las.  K.  .lohnson,  Simcoe. 

Oakville  Fruit  Growers',  Limited \V.  R.  Davis,  Oakvillc. 

Orillia  Fi-uit  Growers'  AsstKiation K.  A.  Li-hmann,  Orillia. 

Oshawa  Fruit  Growers',  Limited Klmer  Lick.  Osliawa. 

Owen  .Sound  Cooperative  Association W.  P.  Telford,  Owen  S.Hind. 

Parkhill  Farmers' (Jniwers' Association Wm.  Leary,  Parkhill. 

Grtirgian  Bay  Fruit  (ircwers'  Awociation I.  G.  Mitchell,  Thornbuiy. 

Sparta  Fruit  Growers'  Association .LA.  W.-bster,  Siwrta. 

St.  Catharines  Cold  Su>rage  and  Forwarding  Com- 

I«ny,  Limit.Hl R-  Thomiwon,  St.  Catherines. 

Iiig.'rsollCo-ofs-rativeFruitGrowers' Association.  ...I.  C.  Harris,  Ingtraoll. 

BKtTISH  COLIMBLA  CO  OPKKATIVK  ASSOCIATIONS. 

Okanagan  PriKluo' .Vssociation,  Limitrtl   Thos.  (i.  Wanless,  Vernon,  B.C. 

Chilliwaek  Farmers'  Kxohange,  Limited Chas.  \V.  Webb,  ChiUiwack,  B.C. 

K^islo  District    Horlicultnral  and    Fruit    (Jrowers' 

Association U.  Wm.  Cockle,  Kaslo,  B.C. 

M  ission  Fruit  Union P-  E-  Lazenby,  M  issu.n,  B.C 

Hammond  Fruit  Gwwers'  I'nion.  Limited N.  G.  Knotts,  H.-»mmond,  B.C, 

The  Kelowna  Farmers'  Exchange.'Limitetl C.  Quinn,  Kelowna,  B.C. 

Armstrong  Farmers'  Kxcliange,  Limited CD.  Ranks,  Armstrong,  B.C, 

Kootenay  Fruit  Gmwers'  Association,  Limited D.  C.  McMorris,  NeUm,  B.C. 

Peachland  Fruit  ( Jrowers'  Association.  Limited R.  J.  Hogg,  Peachland,  B.C. 

'Farmers'  Exchange'  in  coursf  of  organization  at'.'<almon  .Arm,  B,C. 


APPENDIX  2. 

THE  FOREST  FRUIT  GROWERS  AND  FORWARDING  ASSOCIATION. 

COMSTITUTlOSf. 

1.  This  Awociation  of  Fruit  Growew  shall  be  known  aa  '  The  Forest  Fruit  Growei •, 
and  forwarcJiDg  Asgociation. 

b    itg'in^mtere*'"'*  **'  *''*  ■^"°^'*''**"  *'  *•*•  ****««"  production  and  sale  of  fruit  grown 

3.  The  Annual  Meeting  of  the  members  of  the  Association  shall  be  on  the  first 

iTr^L  r^K  T"^*"  I"k  •**'''•  ^^^ '  ?P^'*'  **'^*>''«»  "^y  ^  »'«''<'  •*  "y  ti«"«  "po" 

the  call  of  the  President  by  written  notice.  j  r" 

4.  At  the  Annual  Meeting  the  Directors  of  the  Association  shall  be  elected. 
.1..11      ^^""/"'•^t'nK  of  the  Directors  a  two-thirds  representation  of  the  Directors 
shall  constitute  a  quorum  for  the  transaction  of  business. 

Secreter'^/rr?Mi^r  °^  *''*  '^**^'**''^  *'""  «'"«'**  ^^^  *  ^'resident,  Vice-President  and 

7.  Immediately  after  the  Annual  Me«Mng  and  the  election  of  Directors  it  shall  be 

V  L  P  ^  -^    '.  !  ^'"^u*""'  ^:  "'**='.  ^®"'*''  "  •'*""^  *"  by-'*''  s«.  th«  President  and 

V  ice- President  to  be  chosen  from  the  Directors.  j  > 

nf  ,hl'  i^^^  P';?«dent  or  in  his  absence  the  Vice-President  shall  preside  at  all  meetings 
of  the  Association.  In  the  absence  of  both  a  presiding. officer  shall  be  chosen  from 
tnose  present. 

fK-  n"  ^^  ^'***J7  Treasurer  shall  keep  a  record  of  the  proceedings  of  all  meetings  of 
the  Directors  and  the  Association.  He  shall  also  keep  a  record  of  all  the  receipts  and 
disbursements  of  the  Association.  ,   "j 

10.  Any  Fruit  Grower  within  a  radius  of  eight  miles  of  Forest  shall  be  eligible  to 
become  a  member  by  a  two-thirds  vote  of  the  Directors  of  the  Association 

U.  The  constitution  or  by-laws  may  be  amended  at  any- regular  or  special  roeetin" 
upon  a  two-thirds  vote  of  the  Directors.  *^      rawun, 

THE  FOREST  FRUIT  GROWERH  AND  FORWARDING  ASSOCIATION. 

BY-LAWS. 

1.  The  Board  of  Directoi-s  shall  meet  semi-monthly  or  monthly  or  at  the  call  of 
the  President,  such  meetings  not  later  than  July  Ist  of  each  year 

2.-  It  shall  be  the  duty  of  all  officers  to  attend  regular  or  special  meetings  of  the 
Association  and  hold  office  until  their  successors  shall  be  elected. 

i,oiil.^l!!f  */f  *'»<^y /h*"  happen  by  death  or  resignation  in  any  of  the  offices,  it 
shall  be  filled  at  the  next  regular  or  special  meeting 

r^nnl;,^*.  t**^  "'""fl  rafting  of  the  Association  in  each  year  the  President  shall 
render  a  statement  of  the  business  of  the  season  in  full. 

5.  Each  and  every  member  of  the  Association  shall  pick  his  fruit  in  prime  eon- 
dition  and  deliver  same  at  Packing  House  or  shipping  point, 

6.  An  Inspector  or  Manager  of  the  Association  shall  be  appointed  bv  the  Direc- 
tors to  supervise  the  work  of  grading  and  packing  of  the  fruit  of  the  Assiiation,  the 
salary  of  the  said  Inspector  to  be  determined  at  the  time  of  appointment. 

..  The  Manager  shall  give  personal  instructions  in  their  orchards  to  every  shipper 
Fi^TllifarksTct         ^'"^'»*'°"  ''"^  *«  K'"«d«  »nd  mark  their  fruit  according  to  fhe 

8.  That  he  will  see  to  the  ordering  of  and  securing  of  cars,  and  will  [obtain  what- 
ever necessary  Refrigerator  cars,  which  he  sees  are  properly  iced. 


9.  He  sh«ll  keep  in  constant  communication  with  the  Salesman,  ami  siiall  receive 
orders  and  communicate  them  to  the  members  of  the  Association. 

10.  He  shall  see  to  the  making  up  of  Car  Lots  and  notifying  members  when  to 
pack  and  deliver  fruit  at  Packing  House  or  shipping  point. 

11.  He  shall  keep  a  record  of  name  and  grade  of  fruit  of  each  ^ihipper  in  each 
car  and  forward  a  copy  to  purchaser. 

12.  He  shall  also  inspect  a  certain  number  of  each  shipper')*  barrels  in  eiuh  car 
and  immediately  before  shipment  in  order  to  ascertain  if  the  Fruit  Marks  Act  has 
been  carried  out,  and  if  he  tinds  that  any  shipper  has  intentionally  dinobeyed  the  Fruit 
Marks  Act  he  shall  be  refused  acceptance  of  fruit  and  held  responsible  for  space  in  car. 

13.  It  is  agreed  that  shipper  shall  be  responsible  for  space  ordered  in  car  whether 
he  fills  it  or  not. 

14.  If  the  Inspector  disagrees  with  shippers  regarding  grade  apples,  for  the  settle- 
ment of  such  disagreement  he  shall  choose  one  Director,  the  shipper  one  Director  ami 
both  jointly  .  .y  disinterested  person,  who  shall  decide,  basing  their  decision  on  the 
Fri  °t  Marks  Act. 

15.  All  charges  for  icing  cars  to  be  paid  before  car  leaves,  such  charges  to  be  col- 
lected by  a  levy  on  each  barrel  the  ear  contains. 

16.  Each  and  every  member  shall  have  the  right  to  give  away  such  fruit  i>t'  his 
own  raising  as  he  may  elect,  but  he  six)!  not  make  sale  of  fruit  outside  the  Association 
except  windfalls  and  cull  grades  or  any  fruit  that  may  not  be  accepted  by  the  Asso- 
ciation. Any  member  so  doing  shall  pay  into  the  Association  treasury  the  sum  of  50 
cents  per  barrel  for  all  fruit  so  sold  excepting  gradr    aforesaid. 

17.  Whenever  in  the  opinion  of  the  Directors  it  is  impossible  for  the  As.suciation 
to  receive  at  its  packing  house  all  fruit  grown  by  its  members,  they  may  permit 
individual  members  to  grade  and  pack  the  same  for  shipment  through  the  Association, 
such  grading  and  packing  to  be  subject  to  the  inspection  of  the  Inspector  appointed  by 
the  Association. 

18.  All  members  of  the  Association  shall  spray  their  orchards  at  least  four  times, 
and  as  often  beyond  that  as  they  deem  proper. 

19.  Xo  fruit  grower  shall  be  admitted  as  a  member  of  the  Asstx:iatioii  except  by  a 
two-thirds  vote  of  the  Directors. 


II 


APPENDIX  3 

KELOWNA  FARMERS'  EXCHANGE,  (LIMITED.) 

consTiTUTrotr  asd  by-laws. 

1.  The  object  of  the  Kelowna  Farmer.'  Exchange  i^  the  marketins  of  all  kinds  <,f 
produce  grown  by  the  Members  of  the  Exchange.  * 

the  E'xchan^'"**  °'  shipment  for  the  produce  shall  be  decided  upon  by  Members  of 

whn  "Ih.li*  ^^^;^  • "?'  ^**"°?  *''*.  *'«"be"  "•'all  elect  a  board  of  5  (five)  Directors, 
Prtrt^r'thdAtmr'^^  ••"^^  *'••'  ^''"*'^''"''   Vice-President.  Ld*  2nd  VicT 

yea.  tni?J.Jrvrfor'lS.  •''"'"'  '"'""''"^  '^^  '^«"'"  *""  ^h-"  "old  oftice  for  one 
♦k-j^'  '^!'y.<^»'*«*o'"  n^y  bf  removed  from  office  at  any  time  f„r  any  cause  when  two- 
thirds  majonty  of  the  Members  of  the  Exchange  consider  the  removal  of  slh  WrSr 
m  the  best  mter^Us  of  the  Exchange.  In  the  event  of  such  removal  .,f  a  Dit^cto^the 
vacancy  so  made  shall  be  tilled  by  the  election  of  another  Director  by  ballot  at  £  ame 
meeting,  for  the  unexpired  term  of  office. 

6.  The  general  work  of  the  Exchange  shall  be  carried  on  bv  a  Secretary,  chosen  by 
dtin?1  JJ"  "'"^  ""'^  "*"!"  ^  '^'  ««"''™'  management  of  the  Exchange,  tlsolf 
^i  ,f«  fnl  v''"  ""fT"!*'  »»'«  '•*»"^i»«  ot  produce  and  i,.spectiD«  the  san.;  loading 
nlvXt.l''r".'''''*P'°5"lrr°*'''  ""'^  «*"*"  receive  an  sums  of  money  due  or 
annrn!J    f  K    .f  p"»!:,'"'i*  ?.^*"  '^''^''^  *"  "'°"«y''  "'"^'^^'^  '°  some  chartered  Bank, 

oCfth!  if  ''.'  ^^  °*  ^''"T?  •^"  P^y'"^''^  *°  ^  """J^  without  the  written 
order  of  the  Secretary-l reasurer  and  the  President,  or  in  the  ca.s,.  ,.f  his  absen.e  of  the 

Irti^ZfTh'T  '"•'"'  '»''«*«-  ?f  *^"  -"•*  Vice-President  ;  give  due  not,';  o  all 
meetings  of  the  Association  and  of  Board  of  Directors;  keep  a  record  of  all  proceedings 
of  same ;  wnte  all  etters  in  the  name  of  the  A,ssociatio„  and  conduct  its  correLonde.  cf 
shall  keep  copies  of  the  same  in  a  book  t<,  be  provided  for  the  purpose.  ^ 

,.nrlJ'  ^*"''.^'^''«*'''«;Vhe  exchange  be  open  to  inspection  of  Directors  at  all  times, 
and  one  specihed  day  of  the  week  to  ordinary  iiKniliers 

Board' of^DireX'f'^  '^''"  ^'^  '''''^''"'^  ^  8'''^  ^"'^"^  ^°  »"  »'"<»""»  satisfactory  to  the 

!»    Each  member  shall  have  a  number  or  mark,   which  shall  be  placed  on  every 

.ow;.V?h'.'  i."'  i",'^^^^\'P"'f^  <"•  thing  shipped  by  him.  The  Direcfors  shall  decidi 
how  such  mark  shall  lie  placed. 

10.  All  produce  for  shipment  shall  1«  inspected  before  shipment,  and  if  any  or,.- 

sort^e.^TnU"/'^ ''"'''''•L? "^"^  '"'J'^  ™"*^'''°"  ^°'-  shipping  such  pi-ocJuceshilf  he 
produce  b^lonT"^  prepared  for  shipment  at  the  expense  of  the  party  to  who,,,  such 

11.  A  fund  shall  be  created  by  assess.nent  on  each  sale  to  cover  all  losses  bv  frost, 
transportation,  or  bad  debts,  or  any  other  cause,  not  due  to  the  shipi>er. 

12.  Payment  for  produce  will  be   made    to    the    .shippers   on    the    receipt    by   the 

Board  of  Doctor"'"'  *''^'''  ^'''^"''^'  ""''""'  "'*'"*"'*«  "^dered  by  the  full 

13  In  case  of  their  being  more  of  a  certain  class  of  produce  on  hand  than  the 
oiders  for  such  produce  for  the  time  being  demand,  each  member  shall,  as  far  as  the 
TmoMts        *^         °        '  convenience   of  shippers  will  permit,  ship  proportionate 

r,.n^^*'  ^'°;^J.«™'^.'"'** '^'»''"  ^7  shipment  of  produc..  shall  be  considered  unless  such 
fn.?f■^fi^l  ^  ''^'•^'•^d  *t  't'  'l''»"""'>«d  point  of  shipment,  has  been  inspected  and 
found  fit  for  shipment,  or  has  been  prepared  for  shipment  as  provided  for  in  rule  10. 


» 


s 


15.  The  aUndard  of  quality  re>|uirecl  in  produce  and  the  condition  in  which  it  is 
to  be  delivered  for  shipment,  im  lading  the  kind  and  -luality  of  the  saekK,  crates,  boxen, 
or  other  packages  used,  thall  be  decided  by  the  Board  of  Dircctor- 

16.  The  amount  of  salary  to  be  paid  *o  the  SJeoretary  appointed  under  Kuie  7, 
shall  be  decided  by  the  Board  of  Directors. 

17.  Three  meml^rs  of  the  Board  of  Directors  shall  form  »  ffvorum. 

18.  Any  member  of  the  Exchange  obetructing  the  work  of  the  Exchange,  causing 
loss  or  inconvenience,  may  be  suspended  by  the  Secretary  until  such  (|ue»tion  shall 
have  lieen  dealt  with  by  the  fioard  of  Wrfctors.  Any  nwraljer  agreeing  with  the 
representative  of  the  Exchangn  or  th#  Board  of  Directors  on  the  price  he  will  t  ake  fur 
any  certain  produce  sholl  not  dispose  of  ft  at  another  "rice  unless  he  first  gives  to  tlw 
Exohange  the  refusal  of  the  same 

19.  All  complaints  must  be  made  in  writing  to  the  Board  of  Directors. 

20.  Two  Auditors  shall  he  elected  annually  who  shall  audit  the  b<>oks  and 
accounts  of  the  Exchange  at  the  end  of  the  shipping  season,  or  oftener  if  re<iuired  by 
the  Board  of  Directors. 

21.  The  value  of  each  share  in  the  Kelowna  Farmers'  Exchange  iliall  be  «t.j,  and 
each  member  shall  subscribe  for  not  less  than  one  share. 

22.  A  meeting  of  Shareholders  .shall  be  railed  at  any  time  to  give  the  price  which 
they  are  prepared  to  accept  *or  their  produce,  and  in  tio  ease  shall  it  Ije  deviated  from 
unless  the  Board  of  Directors  see  it  is  in  the  intere.sts  of  all  parties  to  do  so. 

2.3.  The  expenses  of  the  Exchange  shall  \ie  met  by  a  percentage  on  returns  for 
produce  sold  by  the  Exchange,  the  amount  of  such  "percentage  to  be  decided  bv  the 
Board  of  Directors. 

24.  A  two-thirds  majority  vote  of  the  nieml)ers  of  the  Exchange  shall  o\er  rule 
any  action  or  decision  of  the  Directors,  and  any  member  may  appeal  from  the  Decision 
of  the  Bosrd  of  Directors  to  the  Members  of  the  Exchange.  In  such  ease  the  decision 
of  the  Board  of  Directors  shall  be  final. 

25.  Any  changes  to  these  rules  may  be  made  by  a  two-thirds  majority  vote  of  the 
memljers  of  the  Exchange,  taken  at  u  meeting  call,  d  to  consider  such  change,  of  which 
at  least  ten  flays'  notice  shall  Ite  given. 

25  (a)  A  majority  of  the  stock  subserilied,  up«m  wlii;h  all  legal  calls  or  assessments 
are  paid  in  full,  shall  constitute  a  quorum  at  any  8h-., beholders'  'neeting,  and  no  vot<? 
shall  be  counted  which  is  not  .epresented  by  one  share  of  stiM-k  upon  whicn  all  calls  or 
assessments  have  been  paid. 

25  (b)  The  Directors  shall  have  power  to  levy  and  collect  asses.sments  on  the  capital 
stwk,  the  same  to  become  delinquent  in  thirty  days  from  day  of  notice  in  Ujcal  paper  of 
such  asses.sment.  The  Directors  may  s'll  such  delimjuent  sto.^k  at  public  auction  to  the 
highest  bidder  for  cash,  first  giving  thirty  days'  notice  of  such  sale  in  a  local  newspaper, 
such  sale  to  be  made  at  the  door  of  the  otfice  of  ilie  Exchange. 

2.5  (c)  That  no  dividend  of  nion  than  .">  per  cent  he  paid  on  the  stock  of  llie 
Exchange,  any  surplus  funds  to  l<e  applied  to  the  running  expeii.ses  of  the  .Exchange. 

25  (d)  The  President  or  Chairman  shall  vi.te  upon  all  business,  and  shall  have  r... 
casting  vote  or  dual  vote. 

26.  The  annual  meeting  of  the  Kelowna  Farmers'  Exchange  shall  !«•  held  on  tie 
first  Monday  in  January  in  each  year. 


2« 


APPENDIX  4 

CONSTITUTION  AND  BY-LAWS  OF  THE  ISLAND  AND  GYPSUM  FRUIT 
COMPANY,  INCORPORATED  UNDER  THE  LAWS  OF  IDAHO.  CAP 
ITAL  STOCK,  «5,000.    AiTT  AMENDED  JUNE  13th,  1900. 

CONSTITUTIOK. 

Section  1.  This  aasociation  of  fruitgrowerH,  being  incorporated  umier  the  laws  of 
Ohio,  shall  be  known  as  the  Island  and  Gypsum  Fruit  Company,  its  capital  stock  being 
in  the  sum  of  t&,000. 

Section  2.  The  object  of  its  organization  is  for  the  sale  of  the  fruits  grown  by  its 
members,  also  to  buy  tind  Hell  such  fruits  during  the  season  as  opportunity  presents. 

Section  3.  The  annual  meeting  of  the  stockholders  of  this  company  shall  be  on  the 
first  Saturday  in  Decemlxtr  uf  each  year.  Special  meetings  of  the  stockholders  may  lie 
held  at  any  time  upon  the  call  of  the  President  by  written  notice  mailed  to  each  stock- 
holder of  record. 

Section  4.  At  the  apnual  meeting  of  the  stockholders  five  Directors  shall  be 
elected. 

Section  5.  At  any  meeting  of  the  stockholders  a  two-thirds  representation  of  the 
stock,  either  in  person  or  by  written  proxy,  shall  constitute  a  quorum  for  the  transac- 
tion of  businesii. 

Section  f .  The  officers  of  the  company  shall  consist  of  a  President,  Vice-President, 
Sf  cretary  and  Treasurer. 

Section  7.  Immediately  after  the  annual  meeting  of  the  stockholders  and 
Directors  are  elected,  it  shall  be  the  duty  of  the  Directors  to  elect  the  officers  as  named 
in  Section  C. 

Section  8.  All  elections  of  this  company  shall  be  by  ballot,  plurality  electing, 
conducted  by  two  tellers,  appointed  by  the  President. 

Section  9.  The  President,  or  in  his  absence,  the  Vice-President,  shall  preside  at 
all  meetings  of  the  stockholders.  In  the  absence  of  both,  a  presiding  officer  shall  be 
(.'hosen  by  the  stockholders. 

Section  10.     The  Secretary  shall  keep  a  record  of  the  proceedings  of  all  the  meet- 
ings of  stockholders  and  directors,  and  shall  receive  as  remuneration  the  sum  of  S 
for  each  and  every  meeting,  when  such  servires  shall  be  duly  rendered  by  said  Secretary. 

Section  11.  The  Secretary  shall  keep  a  correct  record  of  all  the  receipts  and  dis- 
bursements and  report  the  condition  of  the  finances  annually,  or  as  often  as  the 
Directors  shall  desire. 

Section  12.  The  Directors  may  select  not  to  exceed  three  of  their  number  to  act 
as  an  Executive  Committee  (the  President  to  serve  as  Chairman  of  this  Executive 
Committee),  to  have  general  charge  of  the  affairs  of  the  corporation  during  the  fruit 
seiison.  Thi.s  committee  shall  order  all  purchases  of  supplies.  The  Directors  shall 
regulate  the  amount  of  compensation  this  committee  shall  receive. 

Section  1 3.  Any  fruit  grower  in  Ottawa  County,  this  State,  shall  be  eligible  to 
become  a  member  by  a  two-thirds  vote  of  the  sti^ckholders  of  record  at  the  time  the 
application  is  made,  also  a  two-thirds  vote  of  members  shall  determine  the  value  of  each 
share  of  the  stork  that  such  party  shall  pay  inti^)  the  treasury,  if  he  or  she  shall  be 
admitted  as  a  member. 

Section  14.  The  Constitution  or  By-laws  maybe  amended  at  any  regular  or  special 
meeting  upon  a  vote  of  two-thirds  of  the  stockholders  or  stock  in  the  affirmative. 


BV-L.\W.S. 


Article  1 .  The  Board  of  Directors,  during  any  season  when  there  is  not  a  failure 
of  fruit,  shall  meet  in  session  semi-monthly,  beginning  such  meetings  not  later  than 
July  l-'ith  of  each  year. 


VI 


Article  i.  The  Executive  Committee  daring  the  fruit  mmoii  of  e*oh  rear,  shall 
neet  at  leaat  once  a  week,  or  oftener  if  the  interent*  of  the  company  shall  demand. 

Article  S.  The  President  shall  hare  a  general  superrision  of  the  businewi  of  the 
oompany. 

>,.  ...  Article  4.    On  or  before  the  first  of  May  of  each  year,  when  the  fruit  crop  in  not 
a  failure,  the  Directors  ahall  meet  and  name  their  Manager  for  the  season. 

Article  5.  The  Manager  shall  have  charge  of  the  buxiness  of  the  company  in  its 
detail,  under  the  supervision  of  the  President. 

Article  6.  Manager  and  Treasurer  shall  give  bonds  in  such  a  sum  ait  shall  be 
acceptable  to  the  Directors. 

Article  7.  The  Treasurer  shall  receive  all  muneyH  from  the  Manager  and  deposit 
the  same  in  Huch  bank  to  the  credit  of  this  company.  Such  depository  of  the  funos  to 
be  designated  by  the  Directors.  The  Treasurer  shall  check  the  same  upon  order  from 
the  President,  countersigned  by  the  Manager,  ur  upon  order  from  Manager,  as  may  be 
directed  by  the  Directors. 

Article  8.  It  shall  be  the  duty  of  all  officers  to  attend  all  regular  or  special 
meetings  of  the  company,  and  to  hold  office  until  their  successors  shall  have  been  elected. 

Article  9.  When  a  vacancy  shall  happen,  either  by  death  or  resignation  in  any  of 
the  otfiveH  established  by  the  constitution  or  by-luw  uf  the  company,  it  shall  be  filled  at 
the  next  regular  or  special  meeting. 

Article  lO.  At  the  annual  meeting  of  the  stockholders  each  year,  the  Manager  shall 
render  a  statement  of  the  business  for  the  Heason  in  full. 

Article  11.  Any  member  of  the  company  may  withdraw  at  any  time,  between 
December  or  the  first  day  of  April.  Huch  notice  of  withdrawal  must  Im  given  in  writ- 
ing,' to  the  PreHident  or  any  Director  of  this  company.  Thereafter  it  shall  be  the  privi- 
lege of  such  retiring  member  to  sell  and  dispose  of  hiw  or  her  fruits  as  they  Hhall  elect, 
but  this  company  shall  not  take  or  handle  any  »f  such  member's  fruit  thereafter,  during 
that  season,  unless  it  shall  be  determined  by  a  two-thirds  vote  of  all  members  in  the 
affirmative. 

Article  12.  In  consideration  of  the  several  assessiiients  which  have  been  p>la('ed 
upon  the  present  stock  of  record,  previous  to  1900,  to  each  and  every  member  holding 
such  stock  there  shall  be  issued  (gratis)  another  share  (^50  00)  fur  every  sliare  so  held. 

Every  member  shipping  not  more  than  5,000  bushels  of  fruit  'hall  hold  two  shares 
(8100.00)  of  the  capital  stock  for  increased  output,  as  follows  : — 

1  share  for  all  over  3,000  bushels  up  to  .5,500. 

1  share  for  all  over  5,00<.)  bushels  up  to  8,500. 

1  share  for  all  over  8,500  bushels  up  to  12,000. 

I  share  for  all  over  12, (KM)  bushels  up  to  16,000. 

1  share  for  all  over  16,000  bushels  up  to  20,500. 

1  share  for  all  over  20,500  bushels  up  to  25,500. 

1  share  for  all  over  25,500  bushels  up  to  31,(X)0. 

Article  13.  The  stock  shall  pay  a  dividend  of  7  per  centum,  le^s  incidental  expenses, 
as  repairs,  insurance  on  buildings  and  taxes.     This  7  per  centum  shall  be  collected  from 
each  member's  fruit  account  in  proportion  to  the  number  of  bushels  of  fruit  with  which' 
each  has  been  credited. 

*  'icie  14.  Dividends  on  stock,  as  provided  for  in  the  preceding  article,  shall  not 
apply  in  time  of  a  failure  of  fruit  crop.     In  such  times  dividends  shall  be  void. 

Article  1.5.  No  transfer  of  stock  shall  le  lawful  unless  duly  recorded  upon  the  books 
of  the  company. 

Article  1 6.  All  peaches,  pears,  plums  and  quinces  grown  by  each  and  every  member 
of  this  company  shall  be  delivered  to  the  company's  packing  house  for  grading,  ]iacking 
and  shipment. 

Grapes  and  other  small  fruits  may  be  delivered  to  the  company  for  cale  or  disposal, 
and  shall  he  disposed  of  for  the  grower  oii  commission  of  one  cent  per  basket, 
f"  Article  17.  ikch  and  every  member  shall  pick  his  fruit  in  prime  condition  and 
deliver  same  promptly  to  the  company's  packing  house.  In  case  green  and  immature 
fruit  01'  overripe  fruit,  or  windfalls,  he  delivered  by  any  member,  same  n)ay  be  accepted 
and  said  members  shall  be  credited  with  average  price  such  fruit  may  bring. 


hm  ibdl  Wf«  tiM  right  to  friva  »wmj  wmIi  ftwh 

bat  iImU  Mt  Mk,  wlMt  «r  wk*  wkal 

wiodidk  Md  «all  mdw  cf  r  r  >  4r«it  th«t  Mf 


IttMMMM 

oonaurt 


ArtidvlS. 
ofMsowa  nMagMht  or 
frait  Mtsidt  ti  tM  «PiqMUiy, 

aot  b*  Mwimd  bgr  the  Mmfmaj.  'Aaj  mmW  m  (Mag  •(•11  pwr  into  »h« 
tnMwvttM  wuB  ol  flftjr  omI*  par  bwibil  fir  all  aodi  frohi  ^iM^  mMiftim§ 
■JortMid  mndm. 

ArtUal*.  AUfraHdaUTOTMlMdiday  •bdlbcertditwl  to  tba  mthb  fnnkhiBC 
tho  HHM  ot  tko  ovwrnffo  prioo  whMi  tho  fMt  hna^*  thM  day. 

OM-tirird  ol  tho  oaouit  w  enditod  m»j  bo  rotaiaod  bjr  tlio  oooipoaT  w 
e)oMolthoMoaoBforfiaolwttloBMat,oiMlfraaithoafgregotoof  thoMBOWitM.  j 

(rom  ooeh  poma  thtro  sboU  bo,  ot  tho  oad  o<  tho  moooo,  boiora  pojriag  Uk,  ^mo 
oTor  to  tho  w^ooUto  aoiborooftho  compoay,  dodactod  oil  oaptaow  and  Iomm.  Al' 
oxpoDMo  of  handling,  packing  and  Barkotuig  froit  ihall  be  bomo  hy  the  •ovoral  memben 
ol  the  oooipany,  in  proportion  to  tho  number  at  bukhela  ol  froit  with  whieh  each  baa 
bean  oodited.  All  loaaea  and  rebatet  shall  be  dedneted  in  propinrtion  to  the  monoj 
erodit  ot  eaeh  member. 

Article  SO.  Whenever,  in  the  opinion  of  the  Directon  it  ie  impoanble  for  tho 
oompanv  to  reoeiTO  at  ita  frait  houae  all  the  praohca  grown  bj  iu  memben,  thor  may 
permit  individoal  membera  tu  grade  and  pack  the  tame  lor  ahipment  through  tjio  houae, 
■nob  period  to  be  limited  by  the  directon.  Reaaonable  compenaalion  will  be  alk>wed 
for  auoh  grading  and  packing. 

Article  21.  Permanent  or  temporary  idditiona,  eateneiona  or  any  no.w  bnildingt 
from  time  to  time  that  mav  be  conatruoted  by  the  company  including  the  praaent  ice 
houae,  the  coot  of  ume  shall  be  paid  by  the  <tock  of  iaaue  l^  a  fund  suffioimit  to  meet 
such  coeta  by  an  aaaommait  upon  the  said  stock  aa  it  ahalf  appear  against  each  and  every 
member,  and  not  as  an  item  of  general  expense. 

Article  23.  The  ocet  of  ice  and  coat  of  putting  same  into  ice  houae  as  it  now  stands, 
%nd  each  and  every  Mascm  when  the  said  ice  houae  shall  be  flUed,  shall  go  into  the 
^  general  expense  and  be  paid  for  as  named  in  Article  19  to  the  By-laws. 

Article  23.  Before  the  annual  meeting,  aa  named  in  iiection  3  of  the  Conatitution, 
if  there  shall  be  available  funds  in  the  treasury  after  all  debts  shall  have  been  paid, 
the  Board  of  Directon  then,  if  in  their  opinion  it  shall  be  deemed  best,  can  order  a  cash 
dividend  to  be  declared  and  paid  to  each  stockholder  of  raoord  up  to  the  flrstj^day  of 
December  of  each  year. 


IJUATIONS 


DA(KT  AN[>COLD  hTOBAGiSGOMllI^QNER'S BRANQB 


Tttk. 
Lift  af  •no*  MittUh  I«p*rtm  of  Farsi  lYo4urU 
MUk  Iw  Oln«M  FMtorlM 
MUK  ftc  OMMMflM. 
■o4m  Amm  of  Dkirytag  In  DtnaiMk. 
Imyrwifit  tf  XWiy  Emik. 
(Jttmokml  TunaOtt^au  B«Ukiiw  to  IMnpiac  ia  1M4. 
Um  of  BxpK«m  of  ■•»•  OuMfaw  PNdveta. 
■on*  of  «to  I^Mlnp  ttet  OwOroi  tfeo  Wa*«r  Oonteat  of  Bnttw 
InatraetloiH  te  TMttr*c  IndivtAul  Oowi,  Me. 
Oxumttf  Gold  StoTMW 

OoBonri  Innraetiofla  re  Frah  Kwln  Act  m  AjBcmdod,  1902  uid 

1606 

OOV    TwttBff    AMiOcUttOM.  Wllb    HotM    0«    tte  SUBfllM  »d 

Tttti&c  of  Milk. 

Swact-Creui  Bnttor. 

Aypufttai  for  tht  Dottmrinattna  of  Waittt  tad  Tax  in  BntUr. 

OftflMrod  QriABi  for : 

Snbot^M  for  OdM  flkorac*  ' 

VotM  Ibr  OkaoMaudnn. 

Baport  of  jtztoaaton  of  lUrkats  DiTiiioa,  1M>4. 

Bvldonoo  of  J.  ▲.  Xvddicfc,  bofore  Ooamittoo  OB  A«iloaHaro 
ajtd  ColoBlntioB,  190S. 

EvidNica  of  A.  McKelll,  before  Committoo  on  AfiioultFre  and 
Ooloaiatioa,  1905. 

Evia  ^ca  of  J.  A.  Suddiok,  before  ComisttUe  oa  Agrioaltsre 
and  Oolonia&tion,  1900. 

ProceedinfB  of  the  Second  Oonforence  of  Fmit  Orewen  -of  the 
Dookinioii  of  OsfimAtk. 

Bepsfii^.  fl(:.ibe  Dairy  CommLiaioaer.  January,  1900,  to  MJurch 


B^Ut  lacaod 

.    Ko 

1»«5 

1 

1  SOS 

*i 

leos 

•3 

1906 

4 

1009 

6 

1005 

0 

190E 

7 

^^oe 

9 

HHhp« 

9 

^^^6 

10 

t     lflO« 

11 

P     1900 

18 

B     1907 

13 

K    1*07 

U 

1^    1907 

•19 

1907 

16 

1903 

H»56 

190f. 

1906 

1908 

1906 

aay 


■^^ 


«i*9flpitfwn  to  tlie  Dairy 


tf.litid  15  ViR  bewnt  t^o  the  manager  of 
I  one  to  each  patron.