It was just stated that Minnesota is a state having a very large number of co-operative business organizations.  Among these are about two hundred live stock shipping associations having a very simple form of organization.  A number of persons in a community, having considerable stock to ship, come together, adopt a simple set of by-laws which provide for the selection of a manager, his compensation—­usually a certain percentage on the gross receipts—­and a small amount for losses which may occur.  No capital stock is required—­only the actual living stock.  The manager ships the stock at certain times, and when the returns come in deducts the amounts provided for expenses and then returns to each shipper his proportionate amount.  In this way the stock is sold at the terminal yards the same day and with other stock from many sections.  It is a very simple, satisfactory way of marketing.

The more I study and think of our apple situation, the more I am of the opinion that a very large part of our fruit could be marketed in a similar way.  Some of our La Crescent friends ship together in carlots successfully.  Why not others?  This is the very best way to begin co-operation in a successful way.  As Mr. Collingwood says:  “Co-operation, like charity, should begin at home and be well nurtured.”  In other words, begin to co-operate at home in a small way and let the future large organizations take care of themselves.

To be specific, let the growers in a community meet and form a fruit-shipping association with by-laws patterned after the successful stock-shipping associations.  Then the fruit should be well grown, picked in time, graded thoroughly and honestly packed and marked.  Haul at once to car.  The manager will take charge and ship as he thinks best.  Each package must have the customary identification marks, so the manager can keep an accurate record of all transactions.  If, by chance, trouble comes up, the shippers can pool their interests, and send a representative to find out the trouble.  Thus they can do together what each cannot do alone.  Even this does not bring the consumers directly in contact with the producers.  It is, however, a step nearer.

The public auctions started in New York this season seem to have been successful, and it may mean an innovation which will improve marketing conditions in general.  These auctions are held under the recently formed Department of Foods and Markets.  The Department has contracted with a large auction company which advances the freight, conducts the sales, guarantees the accounts, and advances the net returns for the goods daily.  The producer is able to get returns within two days.  The total cost is 5% on the gross sales; 3% for the auction company and 2% for the Department of Markets for the advertising and for other overhead expenses.  Posters have been issued to advertise New York State apples.  As this Department has been working only for a short time, it is too early to tell whether it is a success in every way.