operating in 1930 and the National in its first year of operation handled 116,651,805 pounds of wool and 15,354,907 pounds of mohair. In 1931 two other agencies became members of the National Wool Marketing Corporation-the Wisconsin Wool Growers Association and the Indiana Wool Growers Association. By the end of the first year a total of more than 40,000 farmers and ranchmen were marketing their wool cooperatively through the National Corporation. One agency, the Pacific Cooperative Wool Growers Association, withdrew from the National in March, 1932.

In 1931 the National handled a total of 105,787,247 pounds of wool and 11,446,056 pounds of mohair. This made a total of 249,240,015 pounds of wool and mohair handled during its first two years of operation. (See Table 2, p. 52.)

The Farm Board assisted groups in the organization of the Midwest Wool Marketing Association, Kansas City, Mo.; Kentucky Wool Growers Association, Lexington, Ky., and the Wisconsin Cooperative Wool Growers Association, Portage, Wis. The Midwest Wool Marketing Association was organized as a regional agency to assemble and warehouse the wools of growers in Kansas, Nebraska, Missouri, Arkansas, Oklahoma, and northern Texas. The Kentucky and Wisconsin associations were organized to serve woolgrowers in these respective States. Besides conducting meetings in the woolgrowing States, explaining to growers the organization and marketing plan of the National Wool Marketing Corporation, assistance was given in drawing up articles of incorporation and by-laws, in setting up business records, and in helping associations to work out warehouse arrangements.

The Farm Board has also helped the National in developing operating plans and policies, in preparing budgets, in handling membership relations with its stockholder agencies, and in drafting agreements and plans for financing wool.

Work has been done with each of the 27 stockholder agencies of the National Corporation in helping the associations check up their operations and reduce costs.

ACCOMPLISHMENTS OF NATIONAL

Woolgrowers in many sections of the country feel that the National has many definite accomplishments to its credit, although it has been operating but a comparatively short time. These accomplishments are summarized below:

1. Through the operations of the National and its stockholder agencies woolgrowers have been provided with a local market. Without the influence of the cooperatives in providing a local market, there would have been scarcely any market in 1930 and 1931. Local dealers would have purchased growers' wools at almost any figure they chose to name. In many sections dealers would not bid on wools until after the cooperative had announced its advances. Then the dealers would offer to buy wool at the equivalent of the cooperative advance despite the fact that the advances made from 1930 to 1932 have ranged from 90 down to 75 per cent of the market value of wool.

2. The sales operations of the National have had a marked influence in cushioning price declines so that domestic prices have not fallen to such low levels as have foreign prices. From 1921 to 1929 the average spread between Boston and London prices on fine wool was 15 cents per pound. Since the National Wool Marketing Corporation has been operating this spread has averaged 23 cents per pound. This means that the prices of our domestic fine wools have not declined as drastically as prices of similar wools abroad. Even after allowance has been made in the 1930 tariff rate for an increase of 3 cents per clean pound, there still remains an advantage of 5 cents per clean pound in favor of American woolgrowers.

3. Under the cooperative system growers are paid according to character and quality of fleeces. Under the old system, private dealers generally would buy their wools at a flat price and not pay a premium to growers who had a good quality clip or who "put up their wools in good shape. Under the cooperative system each grower's clip is sold according to its individual merit.

4. The costs of marketing wool have been reduced. Prior to the organization of the National Wool Marketing Corporation, taking an average marketing cost for fleece and territory wools alike, it was found that there was a spread in price of about 10 cents per pound between the grower and the mill consumer. Since the National has been operating, this spread has been reduced more than 50 per cent. The presence of cooperatives has forced dealers to buy wool on a smaller margin.

5. A valuable information service has been built up for woolgrowers. At this time, when prices are so severely depressed, it is more important than ever for growers to have the most authentic market information available. Each week the member agencies of the National are supplied with a statement of the analysis of the wool market and general business situation. The National's reports to members emphasize the sales of the corporation, general movement of stocks into consumption, buying attitude of mills, and condition of the goods market.

6. The traffic department of the National has saved thousands of dollars for woolgrowers by securing general freight-rate reductions, storage-in-transit privileges, and combination rail-and-water rates. 7. The National has largely eliminated competition among local wool cooperatives.

8. The National has been instrumental in establishing confidence and a better feeling in the wool trade between the producer and the mill consumer.

9. Through the operations of the National the growers' interests are more adequately taken care of in national and international matters affecting the wool industry. The National Corporation, through its efforts in sponsoring national wool week and in promoting wider consumption of wool and mohair, as well as developing new outlets and new uses for these fibers, has immensely benefited the whole wool industry.

COOPERATIVE MARKETING OF FRUITS, VEGETABLES,
AND NUTS

Cooperative marketing associations have been organized in the principal commercial fruit and vegetable areas of the United States. The fresh fruit and vegetable industry includes a large variety of commodities, the combined production of which is widespread. While some commodities are produced to some extent in all States, the production of many products is confined to specialized regions where climatic and other factors are most favorable. A few examples of specialization will make this point clear. Citrus fruit is produced primarily in California, Florida, and Texas. The two States leading in commercial apple production are Washington and New York. In the commercial production of truck crops, California, Texas, Louisiana, Florida, Maryland, New Jersey, and New York are of importance.

Cooperative organizations have made steady progress during the past quarter of a century. More than 180,000 fruit and vegetable growers are members of these associations which do an annual business of approximately $300,000,000.

The oldest association, according to Federal Government records, is the Fruit Grower's Union and Cooperative Society of Hammonton, N. J., which was organized in 1867 and functioned for more than 30 years. A period of rapid development began around 1900, and by 1931 the Federal Farm Board had record of more than 2,700 fruit and vegetable associations of which more than 1,400 were functioning.

Early efforts were directed toward the organization of local associations for the purpose of assembling, grading, packing, and preparing for carload shipment. Generally speaking, these local organizations handled a single commodity or a group of closely related commodities moving to market through the same general channels. Later, federations of local associations and centralized organizations were formed to enable growers to extend their control and influence in the field of distribution.

Many associations maintain their own separate organization for selling their members' products. Some organizations, with adequate volume of business and handling a product that is marketed over a fairly long period, maintain their own salaried representatives in various important markets. These representatives deal directly with buyers. Other associations with a marketing season relatively short and volume of business relatively small depend in varying degrees upon outside agencies to make their sales contacts for them.

FEDERATED AND CENTRALIZED ORGANIZATIONS

There are two types or organizations in addition to the local association to which reference already has been made. These two types of associations are the federated and the centralized.

In the federated type some local associations have come together for the purpose of selling cooperatively. The local associations own

and control the organization. In such a set-up the local associations perform the services of assembling, grading and sizing, packing, and preparing for shipment. The overhead agency takes charge of the product at this point and renders the services of directing the shipments, selling, collecting the proceeds of sales, handling loss and damage claims, advertising and sales promotion, general legal matters, and other necessary services. Marketing agreements run from the grower to the local associations and, in turn, other marketing agreements run from the local associations to the central unit. Local associations are owned and controlled directly by grower members. Typical federated organizations are the California Fruit Growers Exchange, the Colorado Potato Growers Exchange, the Florida Citrus Exchange, the California Fruit Exchange, and the American Cranberry Growers Exchange.

The centralized type of organization combines the functions of the local association and the central unit. The central organization owns and controls offices, plants, or other local facilities. Marketing contracts run directly from the grower to the central agency. Typical centralized organizations are the Sun-Maid Raisin Growers Association, the Eastern Shore of Virginia Produce Exchange, and the Yakima Fruit Growers Association.

PROGRAM FOR ORGANIZATION OF FRUIT AND VEGETABLE

GROWERS

The degree of cooperative organization among growers producing different crops varies greatly. About 90 per cent of California walnuts and lemons are handled through cooperative associations. In the case of California oranges, about 70 per cent of the growers are members of one association. About 40 per cent of Florida citrus fruit moves through one organization, the Florida Citrus Exchange. California citrus fruit, to the extent of about 85 per cent of the total, is moved through three cooperative associations. In other commodities such as truck crops, the degree of organization is, generally speaking, much smaller than in the cases of California walnuts and citrus fruits and Florida citrus fruits. In fact, some areas and some commodities are hardly represented in the cooperative field.

In view of the foregoing, a program of organization for growers of fruits and vegetables has been developed by cooperatives with the assistance of State and Federal agencies. Through this program it is designed (1) to strengthen and expand existing local associations, (2) to organize additional local associations wherever the need exists and conditions justify organization, (3) to develop regional marketing organizations by bringing together existing locals and by organizing new units when local needs and conditions warrant such steps, and (4) to develop efficient cooperative marketing machinery in the terminal markets to serve the interests of local and regional units and their producer members.

In connection with this program the Federal Farm Board has been able to serve the interests of growers (1) by rendering advisory assistance to existing associations through staff members who have conducted surveys and counseled with extension and vocational workers, officers of cooperatives, and others in the principal fruit and vegetable producing States; (2) by assistance in organization