GROSS SALES

April 1st, 1919, to March 31st, 1920

B and H-Sale Unidentified

A SIZZLER

$684,394.31

The following caustic criticism of the Exchange is from a member who has long been a honey producer, and who has written as much for the bee journals as any man in the state. We give it entire in order that the points it brings up may be commented upon.-Editor.

Tulare County, Calif., March 8, 1920. My dear Bixby:

I am addressing you as editor of the "Co-operator" and in a friendly spirit, and not personally to you, but none the less in earnest.

I am an Exchange member and had hoped to see it succeed, but will be fram to say that I will terminate my connec tion with the organization upon fulfilment of my present contract, unless there is a great improvement in the management. It is not for me to decide where the blame may be. All I can do is to measure results-and lack of results.

The fact alone that the returns from last season's orange honey are not yet in the hands of the producer, seems to indicate that the policy of the Exchange is to exact the last cent from the buyer, while the grower pays out more interest at his local bank than the additional margin might be, if indeed it were secured.

To my notion the idea is all wrong. The main thing the beekeeper is in the Exchange for is to have the Exchange as a medium through which he may receive a fair price for his honey in a reasonable time, and not the promise of an additional cent or two, which, so far as we are able to see, may reach us in time to be included in our last will and testament, as a legacy to our grandchildren yet unborn.

But the straw that breaks the beekeep er's back is: The Exchange requiring cash for cans and cases, while they continue to hold the cash with which he might be able to buy cans if he could secure last year's crop returns. That is about the most monumental amount of gall I ever knew an Exchange of any kind to exhibit. Also, one must give 45

Harmony is beautiful sentiment. It works well in the family, the church, the lodge, in business and, in fact, wherever mankind is associated together. I am for harmony, but not at the expense of my financial standing. Neither do I feel disposed to stand on the street corner and holler my head off for harmony, when the seat of my trousers is so rent that I am more likely to be rated as an I. W. W. than a respectable beekeeper.

I am not a lone objector; sentiment is growing rapidly in favor of more prompt business or no Exchange. It is possible that things can be adjusted to the satisfaction of all, but preaching harmony to members when they need their cash will only incite more resentment and weaken the position of the organization, and make the "Co-operator" sound like a second call from a third rate evangelist. The raisins were dried in September and in October they were sold and paid for; the same as last season's oranges and walnuts, but the honey runs on forever. I am with you for harmony when I do not have to bear the burden with my season's toil, at the expense of my credit and to the actual detriment of my business and family welfare; when there is something to create harmony that does not have to be given in monthly installments in the shape of printers' ink.

As for the future, I am out when my contract ends and may the good Lord endow me with sufficient intelligence to enable me to escape being subjected to such an organization again; may I be given strength to say, "Old boy, you got stung once good and proper; use the intelligence the all-wise One has given you and say 'No': may my old shotgun be preserved for the sole purpose of discouraging in the future such men as those who deliberately lied to me to get my signature on a membership contract. May I be permitted to keep myself clear of such in the future, or may the courts of the land take my case in hand and appoint for me a guardian."

Friend Blank:

We hope that the frank presentation of the affairs of the Exchange given in this issue, may lead you to take a less biased view of the efforts of those who are your personal friends as well as business associates.

The co-operative method of selling honey is such a rank departure from those we have all been accustomed to,

Here

that many fail to understand it. tofore, no matter how much or how little we got for it, honey has always been spot cash. The buyer collected, graded and loaded, as a rule, leaving us nothing to do but pocket the check and drive home. Of course, we paid the broker for his labor and paid him well, rarely less than 15 per cent, often 200 or 300 per cent or even more. We all know of instances in the past where our neighbor received more than double what we did for the same grade of honey.

Now, we have associated ourselves together for the purpose of handling and selling our own honey and thereby saving profits often made for division among ourselves. To do this we must follow out the usual course of trade, and cannot hope to sell much below the current quotations without an insurrection among our members. We were unfortunate this season in having a very slow market; exportation was paralyzed because of the unprecedented low rate of exchange and much honey, as well as other California products, was returned to the United States to be disposed of; and this low rate of exchange caused this country to become the dumping ground for all Island and other foreign honeys, because we maintained the gold standard.

The policy of the Exchange is to secure for its members the best possible price for their products, and to supply the consumer at the lowest possible cost.. Please give us credit, then, for being the first large holders of honey to be sold out, at a very satisfactory figure to our members. As fast as returns have accumulated, in any given pool, a 10 per cent or larger dividend has been paid and some pools have been closed out. As individuals we must readjust our affairs to correspond with these methods of payment.

As to cans and cases, you are mistaken as to requirements; and the advance notice of wants is so that our Manager may have some knowledge of what will be required.

You have not been correctly informed as to the sales of the orange honey pool; nor as to the sales of raisins, while the first walnut pool was closed the second week of April, the second pool being still pending.

We do not wish to deny that many and serious mistakes have been made in our management; nor do we fail to see that our competitors, the brokers, rejoice thereat; they see the handwriting on the wall very clearly, as the co-operative movement among the producers of the state advances and their chances to skin the producer are more and more restricted.

I sincerely believe that we enter upon our second year with bright prospects for success, which are only dimmed by "giving aid and comfort to the enemy" through unjust criticism.-Editor.

ADVERTISING

In order to market our future crop at a profit, we must create greater demand, and this demand can be created just as the raisin, citrus, almond and walnut growers are creating and have created it -by advertising our products. We must popularize our choice varieties of honey by bringing them to the notice of the consuming public, packed in popular sized packages. But we cannot afford to advertise nationally until we control at least 80 per cent of the state's honey production.

Co-operative marketing, to reach its best development, should have parallel co-operative organization among consumers also.

Brother member, be guided by the experience of this year and adjust your financial affairs so that the 60 per cent initial payment on your honey crop may carry you a few months longer than you think it will. We may have a brisk market, the 10 per cent dividends may come early and often-then again, we may not. Be prepared.

While you are kicking about the price of cans and cases, remember that we saved you 50c per case last year, over local prices.

The Exchange becomes your middleman and it borrows from its bank the money to advance you on your honey, just as the speculator borrows from his bank when he buys your honey, except that he uses a portion of his surplus capital as well. As you know, the Exchange started business without any surplus capital, therefore, it must sell the honey to secure the additional money necessary to make you additional ad vances beyond the 60 per cent borrowed from the bank.

Co-operation is nothing more nor less than industrial partnership; the term, however, has been employed in such a way that many have come to the belief that a co-operative organization offers a solution for almost all difficulties in the marketing of orchard and farm products. The success of a co-operative undertaking depends largely on the support it receives from its members and the activities of its management.

-Pacific Rural Press.

BEE-LINERS

Our last case of honey is sold and we will have no carry-over, in which we are ро fortunate, as it will leave a clear field for the new crop.

Twenty-two cases of lima bean honey, extracted after the orange flow had begun, sold at 182 cents. A Pasadena buyer has been offering to make contracts for the new crop of orange at 20c.

Owing to the almost continuous cold weather, the crop of orange honey in Los Angeles county will be light-probably less than 30 pounds per colony average, which is about half of the normal.

The sage prospects in most sections of Southern California are about normal. Nothing above an average crop can be expected. Ventura county reports a prospective crop of about 100 pounds per colony. The buckwheat sections report a fair crop in prospect. Reports from north of the Tehachapi mountains are not very encouraging, owing to shortage in rainfall. Reports from the manzanita sections of the northern counties show 40 to 60 pounds per colony already extracted from that source.

Extensive acreage of lima beans, especially bush-limas, is being planted in Ventura and northwest Los Angeles counties.

There was frost this morning (May 5) at the home of the writer, 20 miles east of Los Angeles. Temperature in sheltered porch 37 degrees. Elevation about 400 feet. This is five days later than frost has ever been seen here during my residence here of 15 years.

Thre are good prospects for a fine crop of deerweed (wild alfalfa) honey in most of the sections that were burned over two and three years ago.

All of the 1919 pools will soon be closed, and those last dollars you have been looking for so anxiously be safely in hand. Collections will be slow on account of railroad strike conditions, as embargos are preventing shipments.

The fact that the expenses of the State Exchange came well within the allotted five per cent, last year, does not excuse the loss of both profit and prestige on every case of comb honey we sold.

A carload of choice shasta (starthistle) honey was purchased by an eastern ice-cream firm.

ABBREVIATED REPORT OF MEETING OF BOARD OF DIRECTORS May 11th, 1920

Informal meeting at 10:30 a. m., to con fer with candidates for position of Man ager. Meeting called in executive sessios at 11:20, all directors present. On mo tion, committee on employment of Manager was appointed, with power to nego tiate a contract, subject to approval of Board.

The removal of offices and warehouse was not found advisable or economical, under present arrangements.

On motion, resolved: That the Local Exchanges be required to deliver honey to the State Exchange graded in accord ance with the rules and regulations of the State Exchange; provided, however, that, upon request of the Local Exchange, the State Exchange undertake to grade honey for it at its expense; and provided further, that any loss or expense necessi tated by reason of improper grading by a Local be charged directly to said Local Meeting reconvened at 8:30 p. m.

The Manager was instructed to keep on selling honey as it comes in, at the best prices obtainable.

The Manager was instructed to accept orders for comb honey, subject to ap proval of price on each car, but under no conditions to accept orders for more than five cars.

Manager Standeford stated that he had taken out liability insurance for all em ployees of the State and Local Exchanges

President Lynch was instructed to con fer with Dean Hunt in ergard to appropri ation for instruction work in Beekeeping.

Small lots of new orange honey are arriving in Los Angeles, and being sold by the Manager at 17 to 23 cents, according to grade. Local retail prices are several cents higher than last season, which would indicate an increased wholesale price.

It is probable that this number of the "Co-operator" will be the last issued under this name and form. An enlarge ment and improvement is contemplated, that will give detailed service and information to our members on all subjects pertaining to beekeeping.

The wild range of the Imperial Valley produces early. Extracting began there by April 10th. Just previous to this a week of cool weather caused a heavy loss from starvation, colonies being very heavy with brood. One of our members fed 50 cases of honey and several hu dred pounds of sugar to 450 colonies, to carry them over this critical period.