I know of no better way to impress the reader with American co-operation in actual practice than to quote from a brief account of the California Fruit Growers’ Exchange.

The Exchange was founded upon the theory that every member is entitled to furnish his pro rata of the fruit for shipment through his association, and every association to its pro rata to the various markets of the country.  This theory reduced to practice gives every grower his fair share, and the average price of all markets throughout the season.

Another cardinal provision of the plan was that all fruit should be marketed on a level basis of actual cost, with all books and accounts open for inspection at the pleasure of the members.  These broad principles of full co-operation constitute the basis of the Exchange movement.

The Exchange system is simple, but quite democratic.  The local association consists of a number of growers contiguously situated, who unite themselves for the purpose of preparing their fruit for market on a co-operative basis.  They establish their own brands, make such rules as they may agree upon for grading, packing and pooling their fruit.  Usually these associations own thoroughly equipped packing houses.

All members are given a like privilege to pick and deliver fruit to the packing house, where it is weighed in and properly receipted for.  Every grower’s fruit is separated into different grades, according to quality, and usually thereafter it goes into the common pool, and in due course takes its percentage of the returns according to grade.

Any given brand is the exclusive property of the Local Association using it, and the fruit under this brand is always packed in the same locality, and therefore of uniform quality.  This is of great advantage in marketing, as the trade soon learns that the pack is reliable.

There are more than eighty associations, covering every citrus fruit district in California, and packing nearly two hundred reliable and guaranteed brands of oranges and lemons.

The several local Exchanges designate one man each from their membership as their representative, and he is elected a director of the California Fruit Growers’ Exchange.  By this method the policy-making and governing power of the organization remains in the hands of the local Exchanges.

From top to bottom the organization is planned, dominated and in general detail controlled absolutely by fruit growers, and for the common good of all members.  No corporation nor individual reaps from it either dividends or private gain.

So far we have dealt almost exclusively with the organization of the Exchange, its co-operative aspects, and general policy at home.  Equally important is its organization in the markets.

Seeking to free itself from the shifting influence of speculative trading, by taking the business out of the hands of middlemen at home, the Exchange found it quite as important to maintain the control of its own affairs in the markets.