Dear

June 26, 1920.

Your favor of the 25th inst. has been received at this office, and we assure you that everything that you say is very much appreciated and goes a long way in encouraging us to our highest efforts.

We hope when some disgruntled member is talking to you about last year's experience, that you can point out to him that when you or anybody else makes a mistake, the first thing that they do is to correct it and then get it behind them and forget it. We hope the membership will take this position regarding last year's operations of the Exchange, and all get together and work hard to make the Exchange a success this year by speaking a good word for it, and we are going to undertake, at this office, to see that such moves are made as will bring about a measure of success.

As has previously been pointed out in letters that we have sent to the secretary-managers of every local exchange, our policy is going to be one of econɔmy, prompt movement of the crop and prompt remittances to the producers, all of which we feel certain will be most helpful to the membership, which, in turn, will help the Exchange in every way.

The writer has been with the Exchange now about two weeks and during that time we have sold some 25 carloads of honey, some of it being in two,

five and ten-pound packages, which, as you know, will go quite a ways in advertising honey under our own brand. We believe that this showing is pretty good when we take into consideration the general situation that exists in the financial world throughout the country, wherein the banks are encouraging the buyers in the East to buy only to meet immediate requirements. Furthermore, it is the opinion of our banks that we should keep your stocks moving as quickly as is consistent with good business policy.

You no doubt have heard that last week we made satisfactory banking arangements, whereby we can advance the producers 60 per cent of the market value of their honey at the time the advance is made; for instance, upon today's market of 20c per pound for white honey, the first advance would be 12c per pound, and as it is going to be

our policy to sell the honey as freely as is consistent, we believe that we can assure the producer an additional advance within a very short time. Of course, when the market fluctuates the amount of the advance would fluctuate accordingly.

We believe that this Exchange, when wisely and properly managed, performs an unseen service that can not be calculated in dollars and cents, and we hope to be promotive of doing many things during the next twelve months that will be constructive and helpful to the Exchange, but to get any measure of success at all, we must have the cooperation of the members.

The writer remembers quite well having bought your honey, when operating as an independent buyer, and we believe that this first advance you would get is at least twice as much as the original selling price was at that time. We believe that this Exchange controls a sufficient amount of honey, so that it has a very great effect in stabilizing prices. A good way to correct a discontented member's attitude is by pointing out to him that he would not be receiving any such price for his honey as he is now getting, if it had not been for the Exchange's ability to stabilize prices. Without further comment, we know that you can think of a great many of the unseen services performed by the Exchange, and hope that you will give this information out as you see it when the opportunity presents itself.

Another thing: Would the independent honey buyer be paying any such prices for honey if he had not been compelled to do so by the influence that the Exchange is able to exert? Very truly yours,

California Honey Producers'
Co-operative Exchange,

C. E. Millspaugh, Gen. Mgr.

net, before the Exchange cut the price."

Now, whom am I to believe? I would like to believe that the Exchange is doing its level best to favor the producer; but when I lok at the statement you sent through Mr. recently, in

which the highest price mentioned in the statement is 14.09c for light amber sage, it puts too great a strain on my credulity. The man who runs my ap iary for me in Ventura county sold his share of the same honey at 20c net. It cost me $75 to join the Exchange; and in spite of the fact that I have reduced my colonies from 150 to 100, I can't even get the courtesy of a decent reply when I ask for an adjustment of my notes in accordance with my present holdings.

Hoping for a reply to the above matter direct from your office, Very sincerely yours,

Your favor of the 25th instant was duly received and contents read by the writer with a great deal of interest, and in replying we wish to make it clear at the outset that anything that we might say (or do) is purely with the motive of being helpful and constructive to the members who constitute and represent the Exchange.

We will leave the answer to your question of "Whom shall I believe" to yourself, and will merely ask whether it is the Exchange or the independent honey dealer that is interested unselfishly in the success of the beekeeper. We wish to cite an instance that comes under our observation this afternoon, wherein we received a telegram from one of our customers in the East, stating that an independent honey dealer (giving the name) was offering both white and light amber honey for less than the Exchange. Of course, you know as well as we that it is the beekeeper who has made it possible for this independent operator to sell his honey for less than the Exchange, by his (the beekeeper's) willingness to sell his honey at a sufficiently low price to enable the dealer to offer it to the trade for less money than the Exchange price. In other words, the beekeeper is playing right into the hands of the dealer, while the Exchange is exerting every effort at its command to stabilize the price. We might add right here that we believe this Exchange controls a sufficient amount of honey so that it does exert a great influence in stabiliz. ing prices.

The writer remembers quite well having bought honey in your district as an independent buyer and we believe that the first advance of 60 per cent that the Exchange makes is at least twice as much as the original selling price used to be. We also believe that if the Exchange receives the proper support from its membership this low pricelevel will not be experienced again.

We believe and feel that you will agree that this Exchange, when wisely and properly managed, performs an unseen service that cannot be calculated in dollars and cents, and we hope to be promotive of doing many things during the next twelve months that will be constructive and helpful to the Exchange, but if we expect to realize any measure of success, we must have the cooperation and loyalty of the members.

We feel that we have accomplished some very good results during the past two weeks, since the present manager assumed his duties, in that we have sold some 26 carloads of honey at prices ranging from 172c to 22c per pound.

We also feel that we were taking a step forward when we were able to make banking arrangements whereby we can advance the producers 60 per cent of the market value of the honey at the time the advance is made. For instance, upon today's market of 20c for white honey, the first advance would be 12c per pound. Of course, if the market goes up the advance would be greater and if it declines, the advance would be proportionally smaller. Furthermore, as it is going to be our policy to sell the honey as freely as is consistent with good business, we feel secure in saying that the producer will receive an additional advance within a short time. When we made this arrangement with the bank it was done with the assurance from us that it would be our policy to move the honey as promptly as possible, for it was their judgment that no merchandise of any kind should be held this year.

Referring to the question that you raise about payments that have been made on your 1919 honey, will say that you have received 85 per cent to date, which the books show to have been 13.25c for extra light amber, 14.09c for light amber, and 10.46c for the dark honey. There will be an additional payment made within probably 30 days and in this connection we wish to say that the nature of handling the business of a cooperative organization is such that a small percentage of the amount due from the previous season's crop carries along into the following

11.9

season.

While the writer's knowledge of cooperative associations is limited, we believe from the information gained that the Prune and Apricot Growers, the Walnut Growers, the Almond Growers, the Raisin Growers, etc., carry into the subsequent season a small unpaid balance and we are advised that some of the above mentioned associations will not close the previous season's business until next November.

Now, Mr. we will be very glad to have you at any time write us and offer any suggestions or criticisms that you may have in mind, and we assure you that we will consider it a privilege to recognize in them what we are certain is done with the right motive, and that is to be constructive and helpful.

We have gone into this matter at some length and consider it worth while. We are enclosing a copy of a letter that will set forth some things, perhaps, in the way of policy that are not covered in this letter. The letter referred to was one sent to the secretary-managers of the different local organizations throughout the state.

Assuring you of our willingness to be of whatever assistance we can in solving members' (and local) problems, and trusting that you will not hesitate to address us at any time, we are Very truly yours,

California Honey Producers'
Co-operative Exchange,

(Signed)

C. E. Millspaugh, Gen. Mgr.

The final end of the state public market scheme can be cyphered out by anyone who cares to step into one of the so-called "Municipal Markets" of Los Angeles, established about three years ago, and see the innumerable catch-penny traps of non-essentials and manufactured clap-traps that the orig inal "produce stalls" have degenerated into. Country produce can be bought cheaper at any corner grocery.

Because at the first trial the Exchange picked a lemon from the garden of commerce, is no sign that we will do so always. Every man makes mistakes-that's why lead pencils have rubber tips."' And look at the opposition we have had to over-ride!

Prof. Ralph Benton, long known as one of our leading beekeeping experts and professional entomologists, has recently become a member of the Exchange.

SUGAR SHORTAGE.

Talking with a honey man the other day, he was asked his opinion as to the course of the honey market—whether the prices now paid to producers would decline, or whether there is a prospect they will advance. Said he: To my mind, it all depends upon the price of sugar. Is there a real shortage of sugar? I don't know, nor do I know of anybody who does know."-Western Honey Bee.

Possibly we may draw some enlightening deductions from these figures taken from "Facts About Sugar," the official publication of the sugar inter

ests:

The actual decline in the world's output from 1913-14, the last years of normal production, to 1919-20, amounted in round numbers to 3,500,000 "long" tons. Nineteen thirteen marked the high tide in the world's production-21,000,000 ordinary tons.

The current crop (1919-20) of 17,000,000 ordinary tons represents a decrease of approximately 17 per cent, or a little more than one-sixth. If the requirements of all nations had remained stationery the shortage would be expressed by over 7,800,000 000 pounds.

However, the world's consumption has steadily increased, until at the present time this increase represents about 9,000,000 ordinary tons. This is the additional amount which the world would consume if it could be had at a low price, not at present price levels.

From these figures it is concluded that the actual world shortage at the present is not less than 8,000,000 long tons.

It is clearly evident that sugar prices are likely to remain high for at least two years to come, as will also honey, in sympathy with sugar. Beekeepers should make every effort to increase their stock and take advantage of an opportunity which may nev er occur again.

Whew! but how cross bees are for a week or two after moving. Look out for trouble with the neighbors during this period.

Brother member, here's the honestto-God fact: All the Exchange needs now is for you to quit "beefing, 99 send in all the honey you have ready, take your 60 per cent advance and say a good word to your neighbor for the Exchange. We are already short of high-grade honey; the chances are we will not have a pound of white orange left in 30 days.

News From the Locals.

(We realize that the local secretaries are very busy, particularly at this time, but we feel sure their members will miss the local items.)

July 1, 1920. To the members of the Los Angeles Honey Producers' Exchange:

You will be pleased to know that under a more liberal policy as inaugurated by our new general manager, Mr. C. E. Millspaugh, it is possible for all members who are not in a position to pay cash in advance for cases and cans, to purchase from the Exchange whatever cases and cans may be required for their immediate needs, having same charged to their respective accounts and the amounts deducted from their honey proceeds.

Los Angeles Honey Producers
Exchange.

W. E. Keller, Sec.-Mgr.

FROM SUPERIOR, CALIF., LOCAL

Dear Editor:

I have been visiting our members in Shasta county, and met them all. They are going to stay by the Exchange, providing it is run in the interests of the beekeepers, from now on.

Some members up there have extracted a fair crop of early honey already; later on their bees will work Condion star-thistle, blue-curl, etc.

tions for a full crop are not as favorable as last year.

In other counties, owing to drouth, the alfalfa bloomed early and seemed to produce well in some sections. First extracting, about July Sth, amounted to as high as 82 lbs. per colony in some apiaries, which is a notable exception, many colonies not being in shape for the honey flow. "'Shasta' honey, (star thistle) will be a failure in other counties, the plants having been burned up by drouth.

Buckeye bloom caused heavy losses of bees in Napa county.

The few green spots in Yolo and Sacramento counties are getting badly overstocked with bees.

"Brake-beam Knight" Graham, backed by some honey-buyer, is at his old tricks again.

Someone up here has adopted the popular Southern method of "pulling' bees-stealing 3 or 5 combs of brood from the heart of each colony, by the score, coming with a machine at night, with empty nucleus boxes.

Our former manager used to tell us we were our own "middleman, now. The way some of our members complain they must have been the middleman between some force which has squeezed them as of old.

Our

Now let's get away from this "middle-man" nonsense. I don't want to be in the middle, where some one may stab me in the back. If we are capable of working among the bees with a temperature of 125° or more in the sun, surely we are strong enough to manage own selling without the help or advice of politicians and profiteers. Stand by the Exchange; that is the only way, but let us not have any more ignorant or incompetent so-called "big men" at the head of affairs. After sugar gets plentiful again, do you want the interests which paid you in 1914 as low as 2 cents per pound for your honey, to do the trick again?

Now I have some questions to ask. How about that very superior'' honey-can which has no rust in it, and handles that don't come off? Has the Exchange in the past had the agency for all the bum honey cans in the country? What is a member going to do with an over-supply of good, smallscrew-top honey from former years? Section 2 of Exchange rules says not to use them. I say, if good and clean, put honey in them. C. HAUSER,

cans

Sec.-Mgr.

Bro. Hauser, the editor sympathizes with you as to cans. He ordered 225 cases, and these contained 5 different styles of cans, some being seriously rusted inside. You can make up your mind, right now, that this condition of things will be remedied, another sea son. Editor.

It is an established fact that co-operative marketing associations, in their attempt to stabilize price conditions through co-operative selling, do not injure the consumer; in fact, experience has proven that stabilizing price conditions eliminates the wide fluctuations in prices from day to day or week to week, and assures the producer the fullest share of the consumer's dollar.

In other words, wide fluctuations in prices encourages speculation, for which the producer pays by receiving the lowest offered price, and the consumer by paying the highest demanded price. This rule never fails.

The Exchange is to be congratulated; it is evident not only that we are growing and nearly out of swaddlingclothes, but judging from the commotion caused when we offered the honey market a shade lower price on our established, carefully graded brands than the independent brokers thought we ought to, we are become an important factor in the market.

Up to a month ago we were told from all sides-and very especially from the inside-that brokers as sales agents were our only salvation. When four of our first nine cars were sold without brokerage, a dim light began to shine through the fringe of wool.

NOTES ABOUT SUGAR.

The Hawaiian sugar crop is about 6000 tons more than was expected, or 577,000 tons.

The 1920 crop of Argentine sugar has been exceptpionally good and reaches 430,000 tons.

Figures of June 26th show that there are 1,176,058 tons of Cuban sugar yet to come forward. It is reported that the Cuban authorities have offered this sugar to the American government at an equivalent of 20 cents per pound.

The sugar crop of British India is very short.

The syrup market is weak and lower, fancy grades selling at 80 cts. per gallon, medium at 35 to 40 cts.

The beet-sugar acreage in the United States this year is the largest on record. Ninety-eight factories will be in operation.

The French government has decided not to purchase the present sugar crop, which it had proposed to take over at an equivalent of 33 cents per pound, for the purpose of regulating the price. The sugar cards" which have long been issued to consumers will soon be abandoned. It is feared by some authorities that in consequence sugar may soar to a level of 70 to 88 cents, but it is considered of the utmost importance that the government keep its pledges of a free market; also that an advanced price may stimulate the beet-sugar industry, which is much depressed under a 'regulated" price.