E:r: F.J'
OF
T)
'
by
::;
Sub'i1tter t
I
1.
the
-
rtta1 .r iflit of'
tLe veqJre nts for the
egie of
vr.
June 19O
AF)VED
Pro
Redacted for Privacy
r of oprt.it of Aric
Cc noi lea
Redacted for Privacy
d of T;3prrtm3nt of "zr1ci
EconomIc
Redacted for Privacy
ChRtrm8n of School GrRdute Corittee
Redacted for Privacy
Dean of Graduate School
Typed by Mrs. A. D. Twombly
ne
in
L.th)r
reattvc crtt
nthr hj
Fu.rtho
nnt
of Antm1
rervi.
t'
oIed1.e!rnt
nr.rert
ritr1.
ts hs 1
r t viub
P'
.binth T2rint, r. F]. rritr of
T1
r11turL
actfte Wool ir:r.
E. dis of
TABLE OF CONTENTS
F0REWO RD
Page
PURPOSE OF THE STUDY......W.....
1
GENERAL ECONOIC SITUATION OF fJOL
THE I MPORT ' 1
OF
) OL TO 0R1 0 1 F
2
6
TE R3
BA(GROUND OF ORGNIZING THE ASZOCIATION.e..e.
9
HISTORY OF PACIFIC WOOL
LI
Association In 1921..........
Li
Association In Late-p Years.... a.
.2
LEGAL STRJCTURE OF PACIFIC
WOOL GROERS
TBLCOMi!ON LAW. . . . * ,
STATE LA,
.....*
a
.
a a a * .. * a a a a a * * a a
.
a a- * a .
.. ......... ..
.
a . . .
. .....
.
16
Act....
.........
TheClaytonActofl9jj4......9,
,.....,..
Capper-Volstead Act of 1922..............
17
18
FEDERALLAW. . .
Sherman
..
-4
ECOOt AIC
SIPTIFICNCE OF L
; T C tt'rn
1 ri T(1
/ t 1'
Dr.)i
r
W.jJj
'
e. rt
ELATPTG TO LEGAL
19
19
T'
ARTICLS OF THE A:S)CITION
*a*sa-O**aa.
ECO.JIC SI2IFICAN
OF ARTICLES.......,444,.
BYLAWS OF TA3)OCIATIONs.as*s *a.*.a.
ECONOMIC SIGNIFICANE OF BY-LAWS
...
..
21
22
23
26
OPER.TION OF PACIFIC WOOL GROWERS
THE PRESENT CONDITION OF PACIFI)0L GROWERS
ORGANIZATION OF PACIFIC WOOL GROWERS...S..,.
Type of the Association.,,..,....,.....
Heed. Office
a..
San Francisco Brancb...............,....
Pacific Wool Growers Change to Stock
MANAGNTPOLICI1-S. . a a . . . . . . . . . . . . . . . . . . .
importance of Good Management.........
Membership Participation in Management..
29
31
31
3].
32
3II
3
36
Membership Polic... ..... ..
Membership .R6lation With The
Association
Membership Solicttation.0...,....,,
Directors Are the Governing Boarda
Managers Actually Conducting the
USiflOgg....
TPDt G P)TIC1' F
'tF1C
i
)L
Marketing Agreenents of Pacific Wool
Growers
.
aaaaaaaoa
The Economic Significance of Marketing
...
Agreement
OtherTradjnPo1jcjeg.....,.,.....,....
ti.?
149
ECON.OrIC FUWOTION
OF PACIFIC
CoOi
TIVE
1w
fr
)OL GROWERS
w EC::NoMIc sOCIrY.
Cooperative Marketing Defined..........0
Purpose and Scope of Cooperativo
Marketing Association . a aa.a a a.
2
2
Econonic Value of Cooperation......,....
PROOUIIN
I)
thITEDSti.rTES
SJtFPTIO
OF
...........
OL IN THE
WOOL INDUSTRY IN THE NORTff;ISTERN STATES
....
The Jastern High Plains Area..,a.,.......
The Central Range Area
Th
California District
Farm Flocks
.........
MARKETING WOOL THROUG.II PACIFIC WOOL GHOERS..
61
61
66
66
67
69
Member's Part in Helping Marketing
Their W0010.a....
69
Weighing Wool....
70
Gradingof Wool
70
Shipping W..Do-1. . . .
aaaaaaaaa a.aaa
7
Storing Voo1. . a . * .
....
78
a
S el1in
oo1. . a a a a a a a a * a a a a. a a a a a a a
a
Price8truetureofWool..........,.e..,.
EVALUATION OF PACIFIC WOOL GROWERS
ASSOCIATION AS A M!RtcETIG AGENCY
82
91
ci*
S*S
-.
**SS*SSSSS
*S
*SSSSSSS**SSSSS
SS**SS**S
**SS
SSS
S
XIcLL(!dV
FIGTJRES
No.
.
;--9 0
anI
It. Prothiz
Wool
)2.-l9.)
iO ..
lit.
'1Oth1Ofl of
ifc .iOo1
njjj
4
33
444 44040
$4444 D 4
ir
!
prtire ;
t:.j-i of
Qountr7 fnyer et1i,i of
:riet1n
8).
rketin Wo1.....,.
No.
1
t.
WooL: Es
iir
Ppj0,
te
and
of iduc
rlL IiflPrv,
Proc1i
raa Fc:ri
Rts
f.vori
otje )- ri Fii
44
V.
on of Wool,
iorr,h;7o;t 192U-L!.
44
00
7
ond
'4.44.
oneutpt1on of Wool
4
*4404
4*4*44
$
4*4414
4
;arctr.
B'aid of
T-; GC5,.,..0.,
Wool Gris
&itp
Spread
4*
40
III. Pro12ction I ort--nd
in Uni:
tc's 1)
IV,
A
j.ioe
6o
7L
Ooutry and f3ton Pris
Since P1f1
'OO1
1)Wei
'r- U. . .
97
}
N'V.tC F.iNTI )4 &fl
ANt
91Ocr
:v
F
?URPO
OF TiE STJDY
Cooperative 'aovemtrtt in China has been under
development since 1926. As a result of inadequRte
transportation, and the inability of farmers to organize themso1ve as well as a shortage of modern equipmerits and o o!npe tent manaen,nt, cooperative
in
soc tatl.one
China have been small both in number and in size.
iegardleas of its slow growth, the significanc, of
cooperation has been broadly rcontzed by the Chinese
people,
They preferred the democratic type of control
of their own business, accepted the basic prinotplea of
limited returns on capitrl and savings distributed in
proportion to patronage, therefore, the rto of growth
of cooperative associations is accelerating.
ool industry in China, generally spektng, is still
in its priitive stae.
Many wool marketing saooiatioria
need competent management, scientific gretn,
ware-
housing, storae, ahipu.tng and inapeotton practices
equipment, besides, very few of thei are organized and
operated by farmers themselves, This study points out
some salient features of the organizatton and operation
2
or in
C
wooL
,001. is proued il
ond the wrld th both. the
Teniprate Zones. it Is
t.ortrit roduct tn tbe or1d
trade. There
vny ra-na tut rrjRke wool move free I
In the co1rc,e f the world. it toas nt need lnrge
at)r:4e and hnridlng exenses, it does not reqIr, retrig
oration nor protection from cold na do fruits and vegotables, therfore1 fretgt ahar:s In pr portion t its
value aro oo.rn)nrt.ve1y low.
rodu'trrj In the world
been follawin a
cyci to pattern. .neriiy, tightr proi.uction results
in a 1owr price,
prodtt,n rults In higher
price. Th lnth of tho cycles or ol prothctton
Vool
appenra to be tbout seven or eIght years from low point
to low pont/ hch cnn be ienthenad o Grtned by
any force that ouos ahtftth of the eoDrioeltc
position of sheep p'odution ifl relation to other
Hltz, Fred S. and Hill John A.
'Rrxge Sheep and
Wool in the Seventeen Western Stetes" p. 2O).
agriculturR). tndusrIea such a rtIghts
wrrs.
Froi the experience of thi
yec- rs (193 f-1930),
observed by John t. Hill, price hs bonn the nefn machen-
Ln aThcttng the producttn end consumption of
Th
I.
following conclusions were reached by him erd ere
izod as follows:
Pt ezound a certath price, the proô r;ion and
con Qtton of wool rends to be balanced, Thta prtce
verts cording to enerl prosportv of the world and
the coo osite price of vari-ie other 8te)le cotties.
Hen wool prices are low as c000ered with the
general level of' the world's proapritr, d below or
in line with the prices of' various other tsple oom
modtttes, the world will eosorb uc :ore wool than
current produt1.on.
Afex a period of low price, the surplus
be absorbed, wool price will raise atn.
1. Abnor'al hth prices whIch rre not iistf ted
by tho oxoral current level of e world's 7roertty
arid the composite price of the world's othor et ple
000dities, enerally, and a et!es sudienly, shut
off huytni by the dtstrtbutng trades. Those ,reat distributing firias constantly stuly the prtco altuetion,
hen they find the price is unJusttftad end can n
'fO
sustained, the7 stop
selling to rtqiler
Iit
t
c'
not
drs with
axiit down o
ue etok
nd
i
lon3 tti imi keep
Th-i thr elI
;i
or-
flUR
1;
.
n turn,
4
ti ir
tq.n oortton
ooi. to OOe
qnd
tc
W)oi
!'1i
!n
-' i
according to th::ir ipoi 0 Lj (' United Stte, Wv
ttii $outh!fjc, Sov&9nt
Unior, Uiugy, d Titt- Ln
Txe
o'i
world totj prodio
rag
d; 3,720 ili ion prnc1
in l93h-l938, bcit , 7(i r!1i1 ioxi 1)Q.S in i9h end
3'30
!1ii1ion
wo3. b,fcrA
Af
li
tfl t9),7
Jtplii, Aren1;1n,
Ti
Ne
ortjp of
AO
7
TTrilon of
''v' rhief
JrVj.
(e.rry, iTpt
zt
13
nmrke t
Belgiirn, i
of wool
chtf' world
Cl
cdo
ne Botrn
Eultz, Fred 3. an Hill John A.
In the Severt,ee
.tei -tes"
and Soz, Inc. liL.;, p0 27.
2
United
p.
tte
D,Jk.
"A-ricuituro
tp and Wool
ie York, John Wiley
R.n(-o
tatiztics'
19L19
rn
nIt.ed
'fl R wool Lortthg eoun..
I, In other wor.i
iuo
S
1flY y&r
1233 md 1)39 vr:
th
Ofl3
ut
dirrz i9Lt
t wool
crt.
of it:h qu1ity.
r;t
1))U
)tIOfl haa bn xcdthz
(]iU3flLtty tipt d1rtflg
ound, 'i
2,7O,O)O poa./
eiticr crt wool or wool
oo1 t& so chp nd of 9uch
low quRlity thnt it Is c&sy ror the w,ol rower8 of the
United &ttcs to prothioe b,tter wo1
'reter pro-i
fit. m carpet woo
or ctu-. Mmh ot
the hi;h quz1tty w1 ¶
rtec1 troi !w3trehjt ?r1d
and. is su
for
nftrers for
apzrior iort:
ttnT3 flLi
f.ner1esE
rftii
si1l int of 3ritm. ii;ji: wool 1i)orted
surtor lut3r
i wooj j''i South ..r!ce ts
Thrtor t3 the vre
Lc1r! wools
S
becse of lcwr
)rLtt
States I),
e Sttsticst! 19149.
Statisti"
1914.9
376 p.
StatItiø"
1914.9
390. p.
"Agriculture
D.A. States United /
/
I. Tble
"Agriculture D.A. States Jnited 2/
Co1lee, State Oregon Station,
liii., Circular Station
Agri of SLmmary
33-37. pp.
:xptment Agricultural
in Uae Land and culture
'rphicOregon'
Hurd E.r3. arid H.D. Scudder,
Oregon.
of state the of marketthge farm from (386,c62,000)
receipts cash total the of O.7 was It Statsi.
United the for total the of 11I,O72,OoQ of
2. was
This 2,928,Oo0. was 1914.8 year the in farmers Oregon for
wool from receipts cash The order./ same the in arranged
also counties different in marketings farm from coipta
re cash it's of importance The counties. larnath and
Lake Malheur, orrow, Umatilla, in second county,
Douglas
year the for production Wool
in
first
waS 19147
average./ 1938-19L7 of 1,369,000
of half one than more little a about were whtch
1914.9
in 713,000 to dropped had Oregon In
In 720,000 and
1914.8
sheep of number the tatht1c1j9, Agriculture to According
lIne4/ forest the and belt wheat bushel 10 the between
Basin Columbia the is state the In sheep of centration
for wool and lamb sheep, some
COn-
greatest
marks
produces county e1ery almost Oregon of
F OREGON rro
state the In
WOOL OP
iMPORTAN
Th
6
000
000'ott
CC)0'Ct
ecr'o
(i;)
0 1U
(c;)
lIzc
I,,.L.j'
a
000
poç
-
i
POOH
(t)
'
OOU jj ;
000
u
0CC
ou ':
LXflD
(;CC
000' Li
SC) 0
4qn1o3
000'
dos eTO
000
000
0CC
CCo'
CUO'6p
000' 81t
COO 'I
000'1
f't(
r'
'1
0(O '9
oco'g
1
O0c'L9
UCC'i:- t
0O0'&
ø2uz
W041J
-
WX
tmo'
L1(T. uo
J:c
1Go1ici
W4341j
Wb WC.ZJ
11pC)a7
'U
i.rt :too
jo
L
8
C oty
mc't'
ttrtct
.
?rodct tt
Pr.'e
pr Pound
rrr, I'
rkc tth(ç
d 11 r
kir
Ik
Untør
Dii ti
Cr'ook
Grant
Hnr
Jotf,ri ,n
£4
)roon1z;
Stt18ttc 1L7,
¶27.
Jiri. 1'49, p.
v c:,1 Ar1c'L1t.rP1
!ç ris Ion tre3 1-.az
pta
For th
'wD1
,
'1
.ited
t13
1vr
ij9
o
1
) Lv
Si
1I'1
1u 1
v,
'
1
a
f
been idven tr
1
t
-
te
h1rher
tjif
W)i
t)CJ
)O1 PPiC3
L.
)StVt ii%"
fl
q;iu
i )E
'T1
'ml
O3E
b
iSi3t't-
q
pRrt111y
fei w1 9i1i In
Bo9tcrn tj
a )Oi1fld
)r'
Ofl tii
i.
dyesjr
bIll w
t}
endLr
tRriff bIll
Is vri 10
19r1 s1ti91
feI
1-o
)
L
3;:l'i
Thapji
;; 1 5U
19
9: t 'ted
C
-
y .n xo"ts in
)fltt
(1ec3 of
have
1
Ii
er
'
in tI Ucj
i21, t19
tariff
Th18
t ept
er
wll.n-fe
1ot10 of aZrc2lr1 orc8 whIi oliwea bhe
and ooiv
was
Inflat!)n.
were a10 tnprent.
cen
'
dia
war
Itrn1fl1 pic derIti
I C
:)
.
3IO period
r
I
I
(:f fc
-
Mi
tb 1
fl
n
D! rr
dffi1i ti-er
tbr
woc'i
i22i olip of
rnv
b
-
for l.v-r
-rioezi.
;o eels
I
)
y. tr:.
for
o1
-r "r.-;-
e
rkof,
4
I nnd.
1oIitr
OPt
tc.r
-
o);.:r
ed.
t1flr
t;r '1
()fl,f:*
OCt t;t
the
c-ri, this
Of
whjoh. br
foste
n
of
evr
r .e tLez of wool
S.
rImottnr),
-
cu
n order to
:rn,
j;
Cooperative
.:t of
_.il
nofit both
io
Its e-tab1
Votdirig du
flQ
!
ton
rfld
1/ Hultz, Fred S. and H.11 John A.
"Range Sheep srid Wool
in the Sevcnteen Vestern
StatesH New York, John Wiley
and Sons, Inc. l9L6, pp. 211-218.
1].
.t,
c;:-;
rd
r. :,t
'
- -.
t :-, tL-c;
r
1;
L'.
c 1 .;
:')r 1t
1
;
.Lw
fts firt
th- rth
uCU
!n .itv r-
)r,i,
tt
V
*41.
a
¶"hE.
:
r. v r r
'11
to-YL
)Ithiflj,
.:)
f wii
;4 t) tt9
'.V?
)i'
0
'-ut
i;r
r)U t
otr1
I'
:
-
r c;i thn th
true ,untry,
1(
)f Jroon ¶.'-Qj
12
The affairs of t'i
ciction were under the
m1.eient nd cfltr')1 )f
itrtct
wool Drodu.cL
up in th
Each
2C,O3O heed of hp signed
rsoertion t 'ntiUed to e1et ne 1irector.
O1E$iOfl hri
Th
of ic 3ir,t,os.
cc
erv&t.ve
vstients ¶n phys1T1 propert;y,
pol:loy over its in-
In l2l, their total
tnvtmmt r.ountEi to hout 1 ,900,
bulk of which
ws in orfie fixtire, f'urnitur and neceary eqniprnent
for conducting th butnes.
ASS()CIATIOE'
y
IC RsSOCi)tjOfl received
iest frr' eastern Oregon rne wool growers .nd
wo1 crrowers
in.
.iintori end c j.:tforni to nmrt
their wool. P a result, the mmte of the association
aa chned. to the Paifie 000peret.lvs Wool (-rovere.
in 1232, c.rtetn ehange were m.de in the co:.po. ..te
aet-up to enable the organization to trmsct the busines in a wider field, It was than incorporated under
the present nm Pacific oo1 Growers,
er copetnt remont, the association has been
expandth t & ;reat extent durLng the past t'enty nine
years. It wea the first time in the history of 0reon
wo1 growing that wetrn Or3on wools have bEen cnre
fully and impartially rcdod th accordance with cornneroiai nd propoe1 oveiniient stn.dards through Paifio
wool rowars. iredtng is 1one by United States Licensed
13
w
or
Rfld. tt
U!
.
ORrt 1:i
Voo1 for yare,
)1i
O')
lu otbr
())3a',
tv '-'-:
0
-;
O;r:
!e-
arpe iove 1rzr
ifLty lu
n
the far1.
'1
.r,C)i Ott
! 1tri 't te? Pin
)1j3
ui ye
tc th
l'n 1.1
o1d Oit?
e
soc1ç,
L, it.
te
Irb-t
3fl
a.:-e
C
n
p
--_,._t
'i.riiing
iit1)fl eottvtty,
:-:'..it -)f
':h
t
p
qcind. tbor W'Ol h
eE?fl
:'.tq%,-4
the,
ftkp th; W'
oil wioi,
to
tb3
c
3.*
r1-)t
t!.oi then
.tru.çi ta
I t-e
-t-n to
sotivi.s of eoo..
.
;r influ-
t..tut.3r- law,
rion law,
tbe
f
t2e :f)Urt
y(Leral iescription aa welTL as the inof these laws upon th o rattan nd organization
of a c.-1' Lva rad to be st ii-s,
b
jLU
c P.)
-
CO11Ofl ICW Is the rule of nation which has crown
up fran old am Dop1ar
fro.ni the decisions cf the
frc:.... the opthion of text wiiters and com-
rnentators in contradistintjo to tha vrittn statutory
ltw, civil o. Roman law or the eeclesiatica1 lawi/
rJndir the
on law, thdivjdual pranerty richt
were rcanized. ¶rhoe rights include riRht of Thrmers
to sell farm products and to buy tcr ixppiis co1lecttve
ly. Udr the comrion law, farriere had the clear right
to asocite theiseiea together in any nuthcr for the
purose of kr oiletr
of thetr pr
collective pur2haes of heir .mplies. These eonitit'.ite
the bac legal stsnn for orsniz1n; a ceritivo.
iikOfl HGnry . 11d 3cLthrs, Marvth A. The Eoonomlcs
Cc eratte Mrket tnr, ew york and tendon, McGr ::n 3ok Company, 1937, p. 269.
:V
)ntr:, :t
I
:;.);3
..).
1n' .t)r
LIP
1
'Fbrtic Lk'r1, viti-'c, riTLtr, Q3
t(4ii14uL i.) 1h
/d?
k' !'4 JO
_
/Irk&r,
TOO)tV2
if. rn
SOOk krpany, TLYI?, p,
rv
72,
n
Thø
L
cJr.t1]. ()f'
2/Fub1jahr' idttorLa1 Staff iid the upervtein at the
rt f
id
AnrøtPtei"
Volume V.,Sectin 77-01 to 7?-2 p'. cO923, BRncrttt
- V1iitney )ompanr an Frueisco 19tO (Oregon Cooperttvea
ro
.tVOj 'UpUO
sopi.oucr rULL
pU
6L d 'Lól
':c pu
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Jo
tO MN 'U1.c?)JiW cA
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tadoo
&.iup
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y puc
uo
1LoA-.xdd-D pu
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pU
4AY. &XØ
upw
a.z
uattnd
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L
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pc
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xcJ
JC
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aou spupTATp
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iUjJG(iO T[&
UCTfl'
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PTAcJc Lq
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eq
i6L Jo
SrtIpuv UJ.TJg
IL
EA.zcd000 uodn uieq o;
UT UT uT:iu'u
ti5oj puu
-doo3 Jo
t uTjp pu1
ut zoui otic
T3Idoco u
pu uie
rr
qvct UiOtJ
;uo
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T1UtS tI(V4 T)OI
Ltt
tofJq
4xo
U:'
J,O
)LO
OP
c
pcZTU
zo ':ioz 'x--j 4uczc.
to UO
9-E
17
r
t on ot
tr
43
or
I
:Nz.ii,
,
C)f CoonerHv Mrktn,
iii1 io
,,7,
z LI
'Thrk
orpriy, 1937, p. 27?.
in ..
nd
:.cno
1m, erw
18
In
in wht,h
1.
t
u1 t.ur
.
t .: :ek
i hortir
tR
r)ro
t. Lv
the
f
n*
I
k
:-to:
or
I
tit:L.r f
t: ff
.rionds
tn
py
) Oi
pritt
tmc't
jiz t.:
)t
oopori
nit
tietr
'1 tD
)C
t- .nt of
bu
t:
r
:m
if
bu
.AO
v1*
-1tu:L
'
11
th
Th
£ c-I
r!
.t
o'u,te
Wd of
IQ
E(Li) IC SIJtFiC1
o
riirc
tJ' T'I
TO LGL iA3iS
:D
been
of Pic1fic )oT1 rov'ers
frthd n ri52v t; t1 -r4 T5 1.5W3 d.CU(1 DCO.
brt or;ni'i a s cor ra;:on nd
The a ocirGtor1
d of bu&i ues
UtrLOr zd t;o oefo.r' t:
bnsiiA
The
bu, inc it is a coo erat.ve
or:i.nary ooror;ior
corporn t;ior, tt is sub ject to certath sp afL i1mita
rovidd in the laws.
tioris
The mnth eifcts of .:.thr&i
C;pCrat1Vk nsoc tions h $
"i
CO?iOfl law DfCO;fll
which
n'31S
nd tte us on
prLv; ti)p 2
Ar'i2r$ to
*3
tht
noi1C 3tth'.
a of Thriiers
t co1lectiie eXlfle.
fio '1 rowrs to oo.;Dte a.
3tt.e law 'nfi:cte
eQn. it's
with th. oubi:c policy of ti
'je hs beon iouur. in te produotion
ultimate a
of aric*ltur$i 'roducts find to stabilize ntn'ketin
condtti'ns irh the eltitnion C SiIC!I&LiOfl and to
blish
brthg about a lower cost f lvng b.rough the
:nt of iiore efficient syst: of distritton. .)ne
pper-Voitd Act effecting tie
iportant pas of
association's o1y is price ikLrg. Th price policy
of ?acific ool rowers has bean carefully srid legslly
funUed so that it will not be "unduly enh&iced° and to be
Federal l&w
charged as monopoly or restraint of tred
2
on the other hand
zes
sfj3 Vool Growers to
engso in interstate iao thterntiorm1 trade. On the
other side, it has the effeot of prevent.ng the associaion troi on000ly or restratht of trcie.
RTICLE
)F
The 'rtiolea of
if Ic Woo]. growers is the paper
filed for record tn nforiity with law for the purpose
of forrig opraijn
In accordance with the
provision of Chapter 8, Title 2, Oregon Code 1930.,
re1.ttng to cooporattve qso eticn, tie Articles of
the Association has been adopted and aporoved by Secretary
of State.
The Artjc1e of Pacific
iol Groers consist of
ne sections, ooverLn the riaoe of the association, the
purpose for or nizin the ornizetion, the principle
place of busir1esa, duration of the association, conditions under wrtch nenberahip iay be transferred, ..Ualitioeti-ns for a member, coopeiattvc characteristic of
the aoctation, and power to assist or to affiliate with
arty regional or national sales noricy for the c000erattve
of any of the products handled br the association.
In Article I, it is stated that the name of this
association shr.11 be Pacific
ol growers.
In Article II, a puroe of proottng, fostering, end
encouraging marketing and producing of all varietIes of
21
ioo1
nd .rti3.htr
st td.
:.O'1Prd this p1rTOSe,
a nither of lai attons such as purchsing and soiling
of wool and nohair, to borrow ioroy nd to loan money
to members, to buy, lease, or sell of real properties,
oertiftcetes of membership, shares of stock, bonds, cornmerctal paper or other evidences of indebtnes end to
a't as ;ent, representative or hro;r for
any person
or association in such activities are provided.
In Article V, it specially provides that this association shall not have any c.auit stock but hc1 admit
members into the aasocitton upon payment of a mefthership fee of one dollar.
A copy of the Articles of the association tii be
found in the Aprendix I.
SflFI:t 4i} )F TL
The sinifjcence of the Prticlos of the Association
ha keon its limitation to the economic functioning of
the Socja1;jon, Paclfth \ool ',rowors has been Organ
ized sa a corporation sad authorized to perform the 35O
kind of business as ordnary corortions do, but, as a
eooperattre corporation, its p'rpose as stated tn the
articles has been mutual benefits a,ong members. embers
of th association handles their on rrkting of wool
and mohair cOoperative1
nd colleottv1y in orderly and
econoriica1 manner, Also the associstlon has an objective
of pronottn
and CflCQU1!
g the produtton of wool and
!mhair, wJh aerves a great part in uiidnc up the
nation's wool thust;ry,
The !rtic1 authorze the
octntjon to borrow
and loan or advance rnmey for the purose of feilttatin
nbers; to buy, eii, over roal or personal proporty,
stocks or bonds; to rt as aent, representative, factor
or broker for an.v orson, f1ri, corporatIon, or association in any of these activities.
Th articles authorizes te asociion to rncke
marketth contracts w4th its .ernbers to sell xcluively
to or through the association.
rws
A33r'rIo
The PacIfic ol (rors has made
cw
un a Bet of by-
lw which provIde rtle tar the rogi1ation of the affairs
of the
law and
socialjov) ond ic.ko provielons consistent with
th the charictor for
atter' or thing relatve to the condut or business o the association.
The by'.'iaws ons1st of sevonteen artIcles coverIng
the rnetthg of members, oor of d!root.ors, their powers
nv
and 'titles, officers, execttve coitte, locid advisory
coinittees, eneral provisions concerning ncnbers,
manager, ruoney borrow1.g etc. also the use of seal, books
and official papers.
A c cord in'-
l II of th
by-law,
of the :mbers shall be held at such 1ces end
at such a t1n
shall.
ss rAated h7 the Board of
Directors. A
s2ect. !leetthg of the nanbers
must be held at the riLace where the assooition is loceed when it is de::nmde by petitIon srnd by twenty
Per cont of the ernberahip.
Ihero a ;,eneral eeting of the assocttion Is held,
me o t
one hundred iembers 'present th person or represented by
ballot snail constitute a quorum for all ourposes. At
any district et'ing, ten per cent of the members re-
siding in the district, prosnted in ersan or represented
by ballot shall constitute a quorum.
The association is dopttng one omber one vote
system, mail voting also nay b3 arranged by the Secretary
prior to ar general 'r special meet
of the association.
The by-laws provide that In each year the territory
of the ssocistion shell be redistricted, and the members
of the directors ra portIoned between the ith of December and the lth of Jnuery, by a two-thirds vote of
the loard of Directors th offIce. Such redistricting
and reapportionmant shall be based upon the sign up of
products handled by the assoeiqtion.
Directors t the association have the power to eonduo'
manage, and control the affairs and the businese of the
rsOciRfofl 8nd
;i
uir...Lo' fr the
n1dnnoe of tho ffc'r nrLd °in
nt of it effajra.
Th tot4rd ot irt,ors fl7
appoint Fm Execut
(or1ttee
roflsjstnr of
te socitjo,
c
rF.k
drectpp, t-
Any three
duct ihe affairs of
c
11rs of uh eecutve
mittee shsfl constitute a quoru for the trnsaction
of usine,
Th
f rrtr
BOF
froa
be
end
y Fppoint en auditing
it ibera..
An annual audit shall
ade by
certified pubiJ.c acccuntsnt, end the oon
dttio of th
a of the soojptjon shall be aported
to the rembors at t
rinua1 ntng,
In Artici,
the oy-law, th
3Oc1.atjon will
have a president, a vice-presi9nt, a secretary, who shall
also act as treasurer, and a manager,
The Board of Djrecto of the ssOcttioti shall con
cluat'iely deteriine tne pools by which the wool and o-
heir of
0
33Ciit:L
11 be mprkct,d, !ll expenses
f ia.intaniig the assOciation shall be
from member.
shin and entrance Ne
the chrres provided in the
standard narket;.rg agrenrit. The b law also provide
the general provtsi3 concernthg mcibers, such as the
eligibility of membertjn, eritrane nd iember8hip tees,
The voting power of the members of the association shall
be equal, each
ber shall he one vote. The property
2
rights and interests of oach rneciber in
property or
other rights of the association. Any :iernber waose rights
are so purchased siiall cease to be a meriber of the asociation. Then sociition issues a crttficate of rnenbership to each meiber, it shall not be assigned to any
other person.
According to the by-laws, suius funds may be di-
bers on the basis of the value of the
the
vided aLnon
products delivered by them under the urkettng agreorients
as a return of a portion of the association. Deductions
or any such surplus may be used all within the dir5ct.on
of the directors for any genei'al corporation purpose of
thrantage to the assoc.ation.
(rtT/'
) J. i
t
(
'
T'P1 ?'Ig
L,
r
'r A"j.:'
tws of the asscciation forms the pRttern of the
oranizat1ori. Generally it covers the me provisions as
those in other assocjtjons0 Ther'e ar
ie epecial
bases in the by-laws of Pacific Wool ro'es which needs
By
discuss ion.
It is provided in the by-law that in each year, the
territory f th as8ocjqtjori shall be re1ttricte4 and the
naeriberhip of directors ro-apportione based upon the
inup of products handled b the associetion.
ioj :ror h
?o tf Ic
fron thei five off 1crg hv3
ar L1 tc mri
the
elect,d 13 dequta to
Thc cix'p1us fundz
the by-lwa will he i
26
q öord ;f
ø
elected. Thi
c1ttr,
tie r'br
the b3ne
t tte
c1tIon
tribt4 t
the
fTicrs
crord1ng
ihe,rs on the
of tht v1ue ot th p'oduct thii.vered to the 'o1at1on.
Such OO1tV h
)rit
m
')fl 7;)j!JPy
ot
by the
.ocjq tiQ. It would utottcUy en
oour;e nibera t expnd their buath wtth th, so-.
c1 tion,
The by-iws i? the
orovid that
every
br s-ir1l
L1t2'rrice fo :)f f11
c:ota pr
hand1
ci
f:r
ti1. Sie
or ,orts owned, provlci
S
I
I3S il?
ho W3 for
i of
'
1i fra T;3
-oil £r 'ob
fe
r
or1
:uoh
rrt p.rr cf
n :ount
00111102) &cnditurea
for pirc 3 r
u
nt of ren
S1'ies, t;xo.:,
LCO
1ti i13 it'3 fr b
1Z4tiOfl nd
that the
2I tT, &v.ii b
.Icrtd tie j
V
ni upEtiMn xoenso,
i'nti, ergen-
27
))L GROF;RS
r
th
-.
:3
Irir.t. tL
over
tn th
3,030
fl, Cli..
'ontan, Th w'l rovrs
ho
western half o. Ori.,cn,
re clled v.1i.ey
growri while the eitrr LIf of
all of
'he
'
oa1ie. 'Y
gates the
'3hIflgtorA,
c ccr1;ci
e
farm
, fron
ne yr rsinrnent ty' ccn
cutr*.t. This contrct. obli'
w1t]:
fr-a f1ck ar
ci;
;C'fl
nd Mn re cail
i1fcrni
flo
the
0C'
r1
1thet cr0::' for tho current
r
.ontract each
year to !?1.4rkt the wo]. throu-;: th rsoc1ttion. Valley
y)a
I 't i;iay b
J.
contracg are called
for s rnny
ntui crt nd
good
the c.rowers Wish th aOCtt1On to
handle their u1. In t).Ls contrict,
ooportunity of
ithdraing in 3e9te:rbr f
r b ':rItim; 'nd ad-'
vising the sso: iion heivcr t.ioy nt to 'encw this
a
controt they I edt
ei nlcd
an &(tVk3 reeoi'd.
he asaoojr.tjon raailltaina a couplets wool miirketin
orvice including fthanc n, w'u, grad tn td
s1Iiug.
ooi Is acid d:Lrectly to nills, throuth it
OWfl aI:s oices. It n1s clips frcn lir.ge producers
23
1r tie r.;m
fi'oks
brm, t
rVL
it. fr 'wi f
.
ti )
b:ra1
i:r
.'" r'
:r1;
Qfl
mrkety jt
od;
p'yrnent 1s:s4e ti
-1:.
f
jous )OO1S .
4
iber
i;u
it;
k!:1i;: coo2oits
w. ;b
i:s
promotion o: L'V6
ti
Thc ho
ff:Lc;e
in Port1nd, O?:cr.
itc:r r-rid
, ,,,,
W' 'th ton otir p ron
tHn in the
t'
tion hr
O3:
A
.t
ti
1
mrd
oifire
-n
wcv
II
c
oen --P
rther
n the
off 5.ue
The
soc
.iington
tc1x, }s I
tcrs re1din 1r Idaho,
Oreor. F;
fe off cerc hvc
bn ele cte(,
C. E. ire1Ie
F
L4 C1rk Iobort, J.. arrers,
rthur A. Goid&ri. th,
then have been servirp the
C'
A4 :rd,
s ordatic'r fo
some of
ercc. of
twenty nine yers, they r'e 11 e' :tnt end well appreci9ted by th repThers
:be 01 the assc'oietiori 1vo their ieeting
annually between the lth or January and the th day of
29
February. A regular meeting or the Board of Di
is held quarterly of each year.
ORGANIZATION OF PACIFIC WOJL
TYPE OF IE ASSOCtTIow
Pacific Wool Groers is a
cooperative msrketthg association. since it only handles
wool and a few wool products, i is a single commodity
association. From the legal dtandpoint, it is aA! moor-
poratod,00ntract, voluntary association, Its membership affiliation is centralized which neans all the members belong to the central organization in PorUarid.
Pacific Wool Growers used to os a non-stock association,
it collects memberanip fee of one dollrr. Pacific Wool
Growers purchases farm products upon delivery, the association also pools products, sale receipts arid expenses.
The head office of Pacific Wool Growers
Is situated at 73)4 N. W. 1)4th Averiue, Portland, th'egon.
There are 12 p6rsons In the head office besides the general manager and the assistant manager. The rest of the
members in the office are the secretary, treasurer, other
administrative officers and the eiployees, Duties in
the head office have been well distributed for the purpose of a sound management. The general manager Is in
charge of general affairs of the association, mostly
READ OFFICE
30
deLing wtth trr
out'ij:
eiRtion,
fl(
attendrt rtni wool confrence5. OfIe uner t
in
r;;i of off
hucirie, wreiu, arid orrnel.
&)use SIe:(:)n J..;nt is tn &-
-r'irs, wnreo-
Fri
rd has be,m in v;.l oisines for
fajfl,
oe?'s re
Wo'l
af the foren,
2) yr
uriq3r hi
rj e)r'
suoer-
vi ion.
r:i
L
I
distri.ct
st
tory
;o two
eon,
st
evtaiLa RLI OL.i orn
Le aso .r
)
i )n has t .v
brrlc
)rr (
!
.:'ost:),
ofCice, on
;TOF?
i'r isco,
rni of th Portlaicj
Tiit the
kind of
)if'
doos, San Frenciso
1fto
c
in
branch office
fornia. It i 1
hoed office o..t it had1
bosines a th Ior
brnch is dei.1
i;i
Califr's an
its
;:er
?oit1;n
and
C)Vers
iic tt
fl SOC 'i.: t;-.on
erurs in
v:Ue ?ortDnc1 <ftfice handling
their
ibera cited in On, Wash.ng
ton and west Laho,
Tho$e two waraouses of Pacific
Francisco are (1) Hisiett'a arehou
o1 Growers in San
oyt
Rrbor
L
'
r';
L
P)PT[L)
ftFD
/
OFFI
a'r,ut
)n ni
"
.es t Iierv' qnd
Pr'tiend D.tr1
SAN FR.O
BHANH
Sn Franctsco fstrlt
?uea tern Nvda and
e.i forn
BflSTN ENH
SALES OFFI'
Star trig
Si1&ng
Warehouse No.
L
and (2) Harbor Warehouse No.
The capacity for storing wool tn Jarbor Warehouse
No.
Since June l93,
was too small.
L
the San Francisco
Branch found that they need some more storing space, they
leased an excellent new warehouse at 806 Buchanan street
in San Francisco.
This warehouse is operated and bonded
by the Haslett Vrehouse Co. and is celled Harbor War
house No.
building contains 32,000 square feet
.
for storing wool.
San Frencisco Branch office is run by one menagor
arid one fleidman,
A fleidman of Pacific Wool Growers
s as a liason person between the growers and the asso-
cition.
His mission is servicing not marketing the wool
for the association.
They go out to contact the growers
by sending shipping instructions etc.
Under the
ssoci
ation's jurisdiction, fieldmen are workIng on caiiIssion
basis.
The cwiission at present tim.e is 3,1.i of a cent
per 100 lbs of wool.
PACIFIC WOOL W9VERs Ca.NG;s TO STO
FOPM
The
cooperative form of the Pacific Wool growers was slightly
changed on December 239to provide for a cooperative
stock form of corporation instead of non-stock.
Thia
was done by vote of the members at a membership meet-
ing held In Port1nd.
There was no change in the
cooperative form of the association, eligibility of
33
miobership, votIr .rthts or nv other irnortnt r1hts
of menbors.
The eharxe
mly pro-1des that thstcud of paying a
$i.o0 nemborhtp fee,
iihr joint te as3oci1tton
now purchsis one 8ha
stock for 1.00, d those who
already merbers and hve 09.id th 'l.O0 mmbersMp
foe are entitled to one hre of stock,
w
iide y in orLr to pørri.it the
Psifie to do
Irc in Th ciistts where the sod.
citions Doton wro1ose is 1 nted mi where mh of
it wools re sold at he least osble e;conse to the
aooiatton, A ui)atantia1 8avincz th ttX3 will rcult
and the new
,-iip 1 ioro In 1r
1ntot '.operat±ve
orazitzation pr're.
&ueh proposc
idieit L
in favor of It,
been voto by 99 of
refor, stock ertiftates
the
L2;abcr
were
i3Ud to iombers in lieu of m ibrhip crtIfictes.
?1A. 'U !E&T ?DtJ lIES
I.PORTAMlE iim
Mnement of an
orgnnization froi the practioi point of view, consists
of the control ncI direction over the ativttiee of an
oraniznt ton.
There are many reasons which cause the failures of
an association, such es financial difficulty, insufficient
inø8, tnabilt4y to it COP)ottti,on, lack
of
thersip interst, and an tnedequate rcount'1n systi. Anyone of these, 'e dtret1y tr,eble to IneffiVolume of b
man
3morIt.
The t1io'snds
ocie3rfI1iy In thE TTnItd
'tr)rs wt',h are Oortjru
Stats n1 bror tor r re
runage1cr1t ni cnorb
c000erat.i.ve
poof tit r:hl1berd
re the mn 'over to nchteve
the SUC'3s,
In. m y or nizatton, th
r5ponsibi1it7 for v
ai1Li
future ojet1v. Th
ior
i.nerient bs upon the
InIttqtl
rioquv t
htevin
future
ctj.on is n7drr ietined, the
i1k.1r ui Its reaijg+jt,,
r(ni 9flothgr
ours. of n as
nor
ilpor tent
h-e
rr
-i nfl
:l t.
o op; rat lye
54OO.itiofl I
titutjon
ajsti'-n constttut,
of the
1ertaIat1ve hon
.
ih forms
the rtain prt of tie ranjzqtto nnd
of the a3oc1ttofl, in other k?or1s,
shouli have
the riht to express the!r ooinou tn overnirt the
fairs of tm1r enterp
tlo run the enterprIse,
The rL;hts of ?Ltr)
of ?nc if ic
ol growers
nrienent are mried. Nportarit !'Irtters Iwolved In
the
rIghts are adottn
'nmts; to olect
nd.-
h
Coflstttutiy
by-laws, ind
cli directors; to vote
upon the
appropriations of money for various purposes, to require
directors and managers run the buaines loally end to
hold them liable for any dare or violating the etatuto,
by-laws, or constituttn of the a ociation; o elect a
committee for examining records arid audIting booi, etc.1/
ME.cBEs:IIp POLICY Pptfi Wool Growers like other
cooperatives has an open ;ieibershtp policy. it is provided in the
rticle that any person, partnership or corporation engaged in producing wool or mohair
may be admitted into the association as a member.
The procedures of joining the association are such,
any wool grower interesting in joining aoific Wool
Growers should write to Portland or
Frcjseo office
for marketing agreement forms and any special tnfomation they wish. Growers are advised to tell how many
sheep they have and what kind, nd also if their woo].
is mortgaged to any of the federal agencies.
After filling out the mr1ceting agreement, gro
send it to the Portland office with the payment of one
share of stock of one dollar the first year only. it may
be dedtd from the proceeds of the clip, from then the
growers beco,e a member of the association.
He may then
1/ These rights are based on the vrious provisions on the
By-Laws of the asso1atIon and the Oregon Cooperative
Law.
36
i, to ortinI
ship
Frqntzc.
-i t r to
$ in tirt1
:ijions
Si ipp ing
:o ji
r)'rs wish
t:
* wool
d be gtvn
is nLn1y
1z.d ti
id te
asoc Rt.)fl rm -t) for tui.
i ton-
ti .iarsh
rnthl with th
the
35OtRtjOfl.
Tho
O
D
:rtn ar
thi
or:nzn.t1on nd feL1
!or ')Uflt7
th
t fl .
I
dt;1oiiai
snse
ut 1etter
and in.dis t' vt
to hndiing
wool
.
ri: e1t
'oro.
t
of orr-;i n
J 'iohq1r fo
bers.
;1v
eri
rn t tonal
the r
:vrthrs,
incIdental
37
II'1Ti')r ?verr yoor PacIfic Wool
Growers put out a sloan - ".ch '1flbsr get a new tmber,"
Particularly iirthg the
soo, the aesocietion
asks the members to help, by nIt ri 1:....iios of prospective
bers, or t1king to their iieihbora about the service
offered by the ?ocific, or a Iattn association fieldmen, and in ccoeriti-- ii other ways to get new r'.embers.
Hundreds of personal lotters vere cent out to members
and others by the ih.Trsh1p department0 :anda of
circular letters eni letters were sent to prospects.
The math oint which the assocition wants to express
to its presocts is that the founcThtion of 000pertion is
not a DrOni3 of profits, but a conviction tkmt through
iFiEPc3HtP S.
members coorerritlon .nd the outstanding services done by
the association, the cooperation will bring the best
possible returns under the circumstanoos0 The association
adopts the technique of ssking the old members through
their own influences, Inviting new members joIning the
or7anizatjon. It attr..cts new eibers by inquiring a
number of questions Inspiring ther the need to join theIr
association for mar1etThng their wool, on the other hand,
it reveals them the dvantages nd profIts they can get
from tho associatIon in the long run. Those qttestions are
ps follows:
Do yu )w t"i, rndee of your woo], and t
11tis
nve of esch gria?
you know its ctual stirina:e?
L)o jou cnow iettr it will bring more in the
'rs or scoutrd1
L.
o you know wnt it is quoted st daily in Boston
arid other wool centers?
you know
6,
:ze or the
ock3 of these gra
on hnnd in e )it.ad $te?
, o'
now te c :msu t: ton by gri.es monthly
i1ls?
b
you know Th:t :Lil1
this kind of wool?
the current sales to mtlls o
t t:
of wool hs
r)1 you kno
urate trade reports nd st
o you knov
.
9
tisti)s nni ctial :i.L1
ttra whtn this wool
is liable to be In deumd?
10.
t:is wool cn be marketed
in orler to brrg ou th rot moneyV
Do you know hcm
nJ.
"If icu cn not answer these qest1ors, you need a
nirketIng :ency, whIch
Pacific Wool Growers
s the ttfic
onthi
oo]. ('rowura.1/
No. 31, Juno 17, 1926.
39
dioctrs 5' ic tf.'
01' fll Ect.tior1, t
it;utc. the
TYic hori of
vern n
Lth i;be ;npr'or, it eon...
1
th.
Tfl
..f :itrc ?o
.i
ii-i O)
i:h
-L1 )ffr;,
n in!nr
ppT
t
h'
I
Ai c,
off
t,
oct1on nd
;r betwe
iertaln
tr,rs
by-1
r
nI ;cii t;tr, t' 1t ti
gui'n
11
tnt1on, also,
n TLia1.s
'r.rRnted
Ic 1s,
7r)
nd
h3 )oio 1+4 ..i-td to l;,rvt
to
Ofl
:'nh °:
t Lttor ;*, to
..:1
r for
afjjce:. f r 'so,
dtsiirz hc f'! of
,
i
to
'crs of the
on, to
r'uov
t. Is&t his :.rut of er:fl.t.,
and s
ii'd.4,
borrow Fr1ne
to make c1-'ats,
to revte an
':3
for the isoi tion in 1t
P ci:
thor ac''
icc, cdt, zrid c :.ntrol
oroorste
powrs, O)fle3s, flL ffl'ti Of The sociRtion. The
t3rritor7 covered by th socictton t dtv.tclad tnto
di.strlats and fourteen of the dtrector3 ro eietd from
brs in such districts. The qaociation
imber f dir to' to be elated frori ch
arong he
decides
dtstrict, s
'1t.trictlng nd sportiontnr or dtroctors
bsed upon tne
f ;hcer, n1 ots stRned up
urd8r tie iketn
*it of the socttion,
f Pi tft
£.ire t:)n3
ool
hVe
m.eting on tie sr.cond orç .f
brury
S
' p.
aUitin, a
-ieettn; 5hu1 be held quarterly,
speia1 ineetI
b
1trectors.
prov.decI n th b'iiqw of
It i
th9t th dir
R
pr
7orttrf th
11nt or by a
octatton
3 3J1 ra tue rio cpntton ftr their
Jir,t>vg exut o twi traveiinc ex)mses
;a
.i. pr da.
trrI
tendi
hid vhervr ,sl1od by the
er trnvi1ing and at.
etris.
ihe iost .;ipartaflt ecooL
boj of dir
to
perf;.
fin.:,tjons thct the
to
Tre qnd enter into ny
fltr.
ftxrit w.th trv pers)r
firris, or orporations In frth
of ary f
ru
poss of the
oition, .nd to cnrry out h, marketin
contr&ts of the aocint ion epruentthg the çrower
collectively. Therefore, ti-is bvr of dirctors hnve
111
effort for proiotn m oreriy wool
been e)er
iretrw cf
ager of
.ofLc
ectors,
t
uid
tb tr
or
tu
conJ t. tt)flM
1in,
1.
tJI
hts
OXC C1
flj
f ac tftc )Oi
flf:y 1r ;hntoa1
trti
11) !.
1s
:3I8.
;-;'. oprat.n-ç +ol c1
9re: (1)
:ch as 2aiis
orcuiuts
rmtcaI bis-
rr)jOfl
1*1..ras, ade.ti.
of o1; (2)
a1sn
of ec terr 1a
ir ch r:e f
i
uthorttios 1a
be
ic.pad by
I 1OflS
frri
oL'
suras11 rrid
for
)
1.ri-
Te
i,.nt ooilc
oort&L,
r t
'ru.i
beer
OVCPI
tc
12
t
r1.i :jj
y.J
of
ifl
office
fe ¶r. 'i'c
utcr.iy,
cr;e
r&r
It 1l1 not
A few
ora of wool inustrv do not make a strong
bid for increed vo1;.m. as lonc F t}wr reeetve suffi-
cient tonn:e to py o)erttn7 expanas, hut the 'ner
of Pccjf1c 'l
ha boon attv and opresstva
and results hao ohon stody increase of volume of busmess handled by th i
lation, Such r'.sults have been
obtRined throu'h ffectiv oporaton and
omical marketirig0
It is important fo, nanaers to m1ntain friervlly
re1ittons with all groups of farnors, to understand their
thterests, to report the bustnoss of the assoctation,
making then realize that thoir as3oition is under good
mmgoment. Clo
nt.act of nFOr to the nieiibers has
been conducted throuh ettending membership meetings a
well as throuh a monthly nuhli.cstion 9Th Pacific Wool
Grower."
TRAitNG POLIC ! OF
Pac if to
ACFt T)
OL G:YErS
ol Growers has been conductjn
it
busiflea8
both in buying and selling of wool for the benefit of its
TnemOers. This has to deal with both growers an
consuiers, therefore, it trading policy can be looked through
two angles. The policy the associstion holds for dealing
with its niembera is mainly civen in the marketing agreernen
which is based on the ecor4oiic need of the members, while
t1v poitc
it hFs for
been
o
inw, r)o1i
thg wi.
).tfi3 .It11. hs
tton
.
md
r.i
o)tLOfl3
tth of
eoo::'up to 'rr
r
thcjr
tO
J2''
tnit, oo'rY..e
C1II1LLOrtS.
.Ptjr;1
..
0
r; tl
1I1
it
1t
that
ieiver iI i1 toc
icn
he Ia a r:-b'r, but doea not
't to dIctate
horeh of
he ahrll rc ta
hov!. i
partIur.;..
hi
rc SIfl'.k; f
i en t
it ia otu.n
he offi cers
or owir of e
n
n: '.r
.ha no real inor
a
i.:a'1
.
e
The
r
ra
c)l :srk
de1iTT
CO n
t:',ir
be t?1. Lvere'i ii zi
snd bar t1i c. ?:ei at
C)1
th
ri :'
't the
toI c..n.iltion, dry, well tied
0 HSSOCIttOfl
1fl7
direct .t the earliest ttie after 3hrtng. The grower
to pnk
t3, hlnck, bu'k Rnd other
ft wools
separately an inirk OfV
plainly. The grower will
eUtDriZe. t
to
l su&-i wool nd dts
bure the Proc3ds ftr iDinci ett1ement is m9de.
Aorto the rem,ri t the aaocintion iy 'ake
.
ore
vanet for tru.c1ng, f
other bdljn cnr.ea rlo :ur
V
r&'i-'iae and
lr)rn$.
Th
a:1at.ion .grees to sell wool t
odIty 'rec1it cop.
portion, in the event th t 1ryc prcra under
'.C. Is no lcni,r effective nd wool suport trogrm
nated, the
ocition will t.re ne ssar tes
of rr? to deltver
on behalf
TQ:'
flel iier our
'iarket his wool, If
nor s'Dport nrogran is in
effect, gr.r rs will. authDrt
..nd
the asoctatton to
SOU.
hi wool.
The
roer agrees that the associtIon ny
dedu.ctions for advancez,
Intorest upon si.ich
lts, costs of transporttion and any other chares or
deuctin due from the r?:rwer to the
octt1on ir.
respective of the prcTrn 1nier which rower's w.o1 Is
sold. Grower wrrnts Ut his wo"l covered by the eon
ta.t has rt hen Ehorn re clear of all mortgaea and
hers. irower also nt1cri.ea the a8OcItton to de
duct 1O per b
ia
:rower' S contribution for the
8uP:0rt of the wool prootion cart
n to increase wool
I
14
C oUS Ui] pt
Ion.
th3
rower
ts hsll
corit.Ln.ue uriii
i8ae1L,n co;red
e
o:c otrt
33.
cI!:
L
gr.t°s, t3prortin of
asociatjor Will py
ti8 proceus
such
etd all the
all
&t;
serves, all ivaitc
d
ntersts. Th actati
8h
classify th woi
district or o' c
thi fat:r
r;i.i mr p'ol :r
ingle wool of like Oijft&tjo.
Th3 contract
association rnc1 th
shall u a ontthuLng one. it Ia
atlon
)osck b
bit iiay h cqnctlI;ti b
P41tY by
of
n writ;
;;.:ie
e tthr
&)
:.11n l'u nii be
C;e ef tive on ti 1. t d-i .f Jnuary of t)if lowing
of any yo.ii on1 st&i
ysar.
t.aose couli be 1i;J a.s
1. £Li agr;icrit iLsres a suff'1c].ent volu
business over
and at a low cost.
riod of
;o or)rnte efftively
ot agr3iont, the
2.
s2ociIt.orA CflOWS
iince th,e pproxLrt iroj xn of bustnes whith ermtta the
of x'vor1 f1,Ln, rerierta
In
1tiri1te b3.s or the
ly urketthg policy.
provtd
us
rchandtsing or order-
ro :rxts 1r..uur
oi
cir.ton a e.ntiud ptre.
1ca
rr ic ion.
conf1thmct tn tritti
T!io
cf
OutiJe byri to
elr on organ
Os
.uov
5.
tit
re p>crti' cf
, inibers nfidia !1
t.on oy offur.
idnir*tø such as
or ts eotpottttve prtce.
tiic
nketn;
r
iha use
tnt
iiSOoiatjon
tho
r:ntj protect th
bns tz
atvart;;e ot oraalzetton's orvos cid tbøn 1lin ti1J if spec
ulrtirr sends pri.es toriri1y above theIr oril level.
of rit 2rovldos
he w
tci of 8ttU:
ai
1O
Y
cjic4ibi1i4L
uis or fl
privIie;es,
nebor and the assocl..
atlori.
7,
ifldiV1d.LI
he a;rrit
Cj(39fl te
:3 r
nb
r:nt lLstd
All t
ive iWv bn wefl. 11 tiud a in the cavaser' s
inc1bok uf tr
erta Coopot iv
t Proucers.
PS].
147
Linc' ici;
nd1er under
ol pe
iuvernyn
ina.rti Li
w
t)
iVLi8
th;
L.1 iri
wool,
tt..i3
.prI1, l9.3
id
tho
itc ol
it
J.$, Apro'i J
i3
3)11
¶13
of wool aucii 83
arid iill th ff wooi
:,rn i
.L:
bl3i, 1
and ort
i3r Lt13
rtcIler.
I
iv Lo ail1s in t;h
LII pr)v3d tio
t t:od for thi
t:ie
cntr.od
I
nt ro urn.; tr
o
This
fisi a1f blood
vr;.nt pr- fo ti could serve
j)
WOj
S
.$. iOV&3rflut
t L..n, to puri1.
;rdLt Corpz
;)oi3 froni. piu.r
c
Ottfl
,
d..;..;:Ln &T.L!.
pro. r$r:
ool
.c
2rhi
3eant1!P1e,
a
/s
icL
ler
s bri
tuo Cor.ilcy 1redi
Pi's aro dutor :wc .-.ci o
pri.s f
t Lug
i/Li.
locc,
s
of wool
Ooroor cion.
ie
b
t ht
prOgra,
tt
re
rüuoiving frt.m 1i/ to i more in th ;1s trin they
wuId reooiv3 itcut the pro;ri.
c
ihr
pz3oribed m;ie nd rgu.iition3, trie pprovec n.tinJ.lerc,
in turns iU3t
t
iiii8 t ;3 ool pirciirased
oorporation.
for t
:Jncier su1
cor of
)4 8
The ttso1i
t
Y'1Lo
'
..
its
.nese U'J
;ll f
:r
:ho pro.'
r"tL.'
laws
ot
L)
fr trc,'e
a
Lus iro
LI.
srnne feli.
.1 aeia of
rcr't '.nt r.i done
WOOl inr ti
th th
v'..
eel':.,
1'
13oion
off ice,
!;)-4
tO
n or
I
not rd'clo1
lL:
-ie.r
,
a
thc1 both
'''''1
r
:'
I
L
u.ra woo
tli$.
n
rlator of wool
gr
itl1s n Jwie a.mi !)ecebr e!. ch year
V ool Puroh s n
rt'tn" to f.ner
staple, i
All woo1
r
overr-
:'Ii2 lIn
gr
of f1ber
tT.i"o
'trength of
CIP13t in tm O.'53 f 1I..
ere .rai
PUCtI)fl sales are often c. 'iu.oLci by
ar
wcoi grades.
i3tton,
L!9
1%.T('7T'I
_J__J
OF pIFIC :')Or
COOPER, 9'IV.
7'
RS
.ryTp 3OI:TY
LT EN3 DFflTED "A cooperative
.AFK:;TrNa I
O3')P:PTI '/E
'
R)'
rir
marketing ascociation is a voluntary business organization established by its momber patrons to market
farm products collectively for their direct benefit./
A cooperative marketing association is governed
according to democratic principles, iebers are owners,
operators and contributors of the comiiodittes handled.
They are the direct beneficiaries of the savings that
It is a business institution, its economic
motives and its econojo character are different from
may occur.
those of governmental and privste commercial enterprises
regardless of their methods of conducting marketing
operations may be vary only slightly from those of
private tradesmen.
±J1POSE A.ND SCOP}j OF COOPMTIVE MRKTIIIGASSO-
The most coron reason formembera to join a
cooperative merkting association is the desire fGr
pecuniary gath The irimedtate purpose of a tarmei"
cooperative marketing association is to obtain the
highest farm price which is the largest price payable
CIATION
j Bakkon, ienry H. and Soharrs,
vin A. "The Economics
of Cooperative Marketing, New York and London, McGrawHill Book Company, 1937, p. 3.
to the farmer for the products which ho has to soil.
ultimate purpose is to elevate the plane of living on
The
farms.
There are many concepts of forming cooperatives,
The main concept of cooperatives is economic. It con-
siders the organization and operation of cooperatives
as a means to a richer life and a higher plane of living,
The chief aim of this concept is efficiency in conducting
the business of marketing and its ultimate goal is social
improvement in agricultural life.
The social concept of cooperation also has ita
Importance. Cooperation Ia often considered as a neans
of social reform. Owen and Fourier sponsored communal
societies with cooperative production, living and government.
This plan eibodIes complete changes in living
and working habits of the metibers. The sociopolitical
conoept considers cooperation as an effective polttica.1
means of Improving the social life of the cooperators.
Sponsors of such cooperattons believe that social reforms
are dependent upon political partisanship.
Some think of the cooperative organization as a
legalist creatton. A association in their i1nds Is a
form of corporate organization in which the legal rights
and duties powers and exposures are carefully enumerated.
There are three ways for a cooperative to make
economic betterents (1) obtain a better price than could
be obtathed by private agencies. (2) obtain the same
price but have a lower riarketthg margin so that the net
price received by the producer will still be higher than
that paid by private middlemen, and. (3) a c ')mb ination
of these two.
ECON3M1
VALUE
?
The econorilc value
of eooperatjves contributed to their members are in
creasing prices, obtaining middlmng profit, reduction
of marketing cost and lower cost or supplies 'nd equipment.
Sometiros the 000perativ have been used as bar
gaining strength for thdivtdua]. friers. For obtaining
the sueces of orderly marketing, a considerable degree
of monopoly control has been used by many cooprt1ves.
Cooperatives also have devoted some efforts to secure
government aid in order to maintain favorable farm ortces.
A
number of cooperatives have tried to get higher prices
for better grades; encouraging better production; advertising for creating demand also by obtaining better
information to meet the demand.
Many marketing cooperatives have been serving in the
place of independent middlemen in the channel of dis-
tribut ion. The cost of marketing of members in a cooperative may be reduced through elimination of certaIn
trade abuses and by handling corriodity in large amounts
so they can reduce the selling cost per unit.
Many cooperatives servo
:enctes to reduce the
cost of supplies and equipment to their iemb'rs. Some
equipment may be expensive, if a rbr ot mbers can
pool a certain amount of money and buy certain equipiei
the cost of production will be reduced. .eribers can also
be benefited from their cooperatives by purchasing th
equipment in larger quantity0
PROPUCTIOM AND ' .SJ!?TI0N OF
Sheep 1ndustr
)OL fl T'iFJ TUTFD ST4TES
in the Uitd St..tes has siifted con-
stantly westward. Until now abDut two-thirds of the wool
is grown in the Focky Mountains and Coastal States.1/
Since 1920, Texas has been the leading sbte in producing
aool./ efore 1929, the Intted States tmort3d about as
much wool as the country produced. From 12.30 to 19)40,
domestic production exceeded i-ports. Since 19b1 1riports
exceeded production to a great extent./
The United States clip has been stabilized at a much
higher level after 1929. Under war stimulation, it
/ Tultz and Hill, Range Sheep and iool, p. 209
/ Jnited States D.A. Voo1 StatIstics, 19)49, p. 10.
/ Table III.
I
0, nt
:i jfl iot
f
!
n th
]
U
r.2rtS
:i rri
TJ
tt,tl,
I
r1d
7.
m11i1n
120
rI
nil
'ith
!)t )d. h';fore
tto
f
)i,
o' rn rt
for
I
rited tt;e
/ i);)
n1.ted
p,
D.A0 Wool
D.A.
'ool
ttstics,
pp.
gt)n r).:.
From the beginning of the prcrin until Au;tmt 19I,
sale of domestic wool to the corporation was mn1t
with ninor exceptions0 After restrictions were lifted,
wool continued to move largely
because its pur-
chasing prices vre higher.
A statistic survey of wool production in the Jncted
States has been given in Tble II. From which, a graph
has been made as shown in Figure II. ron the figure,
the behavior of wool production throughout the past
30 rears in the United ttes could be clearly seen.
In 1929, business cycle reached its peck. F1lowing
that, there was a sharp downwsrd trend which effected a
sharp decline of sheep prices, herders were holding their
sheep in ranches for a few years that caused an upward
trend of wool production. Till 1931 herders couldn't
keep their sheep in ranches any 1onr so they sold them
immediately which caused a sharp drop in 1932.
Sthc 19L.1, a great deal of farm lbor was absorbed
by an expanding war time tndustry which took labor away
from ranches. This tended to cut doxn the number of sheep
raised on ranches, and resulted in a downward trend of
wool production.
12ouoOT I
Jo
ot
Ir
si&
'so
v
6tiri
009'2t1
O09'9
6tp'pL
L1c'ocI
9
Uc
?6'U
96L'
OO't9 L9'O
oo'oL
6'Lo
0031U 9I'
0O?'.
J'L
OOL'99
009
000'i.9
'L
T(IC'L
oo't(9 69't9
OI'0Ot
g1
9.9'0t
i69'Ot
C0?'0I
ro
N
PQttPO4c
uo2tius
Jo flOtili 'erIrozV
'cj
Ioo
9L'1
tL'9
It19'L
6iI'9
t&L'L6
9l'TI6
9
t1
iIItj'( '(t
09
91(1' OI
IOt1'rf11
6go't111
90'.tt
o'o
00'119
O0'99 c'L0'9
t12'
0Oi'99
(CO'99
tL't9
'O'(9 09'99t
1'i1L
960'cIt? O01'L9 96o'o
óc'
oL'ç9
90g'901
1'oI
LL'i6
¶
co'oc
999'?L?
iO'6L
auzi
uIIzot
s'n
O
u.
Lç'cL
GOI'9 1(.'L
006'19
O('i(j
2I'
6L'Lc
116I
L1t
9T161
161
(t(6I
t16t
t16I
It?ôt
O'Iol
66t
p6t
)16i
96t
6I
t16t
6t
6t
i6t
O6t
6ot
GOt't
o:3'tjt
96t
O1 '(.
26t
co;t1 19'6, 9?t
cor'9q
'f'''1
:.cc':'
oo'
,1
991'(2
/..
L'tT
9'(5
OO 'E11
6I
6t
i10 I
?261
O6t
punod
Qc0'
uzot
QAttZON
JO
utiod
pE4tUfl U
flPOj
paonpo,
i1 1( 'Iia.ir1'(L
6ToI-06t
II
T
:.ii
Loris
Df
P DlrViS
3N
1) P
I:
JV.3T 1923 - 19)
'
,00
_0o -
Pod*'t1on of LTOO
300 -
200 -
I
1920
I
I
12
Souroe:
Prodton of PRctfIc
---
-
100 -
I
1930
Voo1 -3t51stics
193
UOSOD
LOr t
-
I
I
hest
F
1 ?L
00E0 Wshtrigton D.. 1Q149 T3-37
I
19 0
57
TABLE III
PRDtJCTIO, I?c?oTs
IN
Year
3flPTION )F
;TTD SItJ.s 1920.1919
Domestic ir
Total
Production
Net Importa
(000Qouns)
Crt
Apparel
1,000
pound.!
1920
1921
1922
1923
192L.
1925
1926
1927
1928
1929
1930
1931
1932
1933
193L.
1935
1936
1937
1938
293,788
290,223
270,367
272,668
22,005
300,003
318,861
339, 50k.
366,720
382,295
L.11,a29
14)42,t01
)d8,096
LI.38,3t2
t129,360
127,531
L19,)11
t22,278
12L.,14.25
1939
b.26,189
19)40
3tt,0l14.
19L1
)i53,120
19143
19104
)4.t,997
td)4, Ot3
)41,R18
19)45
378,L.)4.9
19Lt2
19)4.6
19)4.7
19)4.8
3)4,787
309,398
28o,52L
l98,71
3,093
215,306
189,033
97,820
172,828
121,518
i)o,68L.
2t2,736
9L,186
171,708
169,850
17,579
115,23
13,872
l09,60.
86,6L.7
ioo,ii1
i2,915
13,3t3
59,32t.
29,259
)4,965
13L,203
202,k2)4.
72,017
3, )48 9
3L.,775
79,521
725,237
923,81t
523,171
28,085
23,1.76
160,595
16,711
2,39
173,792
108,296
199,892
2t3,272
321,795
102,663
214.2,e27
357,186
815,98
85).,66
676, 37
616,623
803i.,758
12,)421 1,h9,235
112,120
i6o,6
596,)466
/ Total of shorn and pulled wo
329,287
27)4,597
ilJJ4,633
6)4.2,887
561,8)4.8
2,I370
1714.,t83
171,636
71,851
782,67
36L1.,2
235,)41L1
1I2,562
110,710
150,159
30,812
98,19t.
222,963
613,565
313,126
361,861
1I8,79Ii
90,622
113,796
3,196
1iI,L.68
79,037
157,907
69,973
2.3,667
S
ÔL.0,291
7'7,100
58
T/
TE
1
I
Ye ax'
Dn2S tt
2od2- tl.)fl
and
Connu'tption
('yMill.
Shorn
13si)
OOO pounds
Iip'rt3
Orpet
1,000
pounds
1920
1921
1922
1921
I 92I.
192
1026
1327
1923
1929
1930
1931
1932
1933
I93
193
1936
1937
1 .?33
1:),
\..,4,
,L..00
,f/.
'
r'j,
1b,L.7t
6;J
293
2)
0)4.6
, 10:)
)2,Q8O
,
6, 92
62L.
,
632, i6i
C470j)
909
J-z
'.. ,2.)0
1,103,2fi.
30
F.19,,?03
70,635
617, 1)4i
37 , 66
627 ,4.23
2 693
I
L,J.0
7
7?,
073
27, 083
)
7I, Vo
64, 300
1, 12Z, 71
1 9i. c:
191 .6
1,183,207
1,3:I ,3714
I 9L7
9Lz. 9,689
1914.0
1 91i.1
1 9L.2
19h3
1 9)Li
19)4.8
Source:
1,] 20,).t.19
1, 028
1,i3O22
1, 037, 62lj
J2l,.77
:i ,lL2,3(
1
.
r3f3
1,;21, 236
Stttt f3
O,l03
1'2,2O3
I 2', 70;
1, t:00
120, 00
130, 700
13o, lOt,
1c7,io0
3 r, 600
101,200
103,333
Ul, 73J
12, 530
669,016
791,200
1,26'?, 309
1,309,661
1939
J..)
6i,730
J.S.D.A.
152,700
93,030
000
117,600
102
_),Jj
O,20O
6U,ioo
770, coo
7cc;, 300
6)14,700
69,7oo
61,600
68i,800
6O, 000
712,100
c3, coo
6L8 ,h.00
14.98 ,1.00
3,000
I0O
100
318,900
732,200
iO6,883
822,560
820,900
1,213, 977
1, l96,7l
1, 16, 736
1,116,197
1,1I1.t.,87ti.
1, 279,!97
WOOLS iNpJ;:Tr'
IN P
T
T TS
Paciric ool Ck 'owe r a has its members spread over all
the northwestern states. In order to study the production
of wool in those states, asurvey of wool industry in the
northwestern states is therefore made.
Pacific ol Growers has it members located in the
state of' Oregon, Washington, California, Idaho end Montana.
Es.ch year, it receives wool from those states as well as
Alaska and Nevada. Although the general system of flock
manreient in these northwestern states are fundamentally
the sane, however, there are still some variations arid
adaptations have been developed in various regions in
order to fit the local conditions. Qeographically, these
wool producirtg states are rbitrarlly divided into the
following districts: The Central Tange L.rea, The Idaho
District, The Pacific Northwest, The astern JUgh Plains
Area, arid the California District. A cenera1 survey of
the topography, type of flock nzeicnt, and the type
of sheep within each distrIct is made as follows:
The Central qno Prea th
IG
eludes western Wyo.in, utah, southern Idaho, southern
Oregon and Nevada. The general characteristics of the
topography in this area is extensive areas of desert
lands, which are mostly surrounded by high mountains.
FIGURE III
M11110n9
of
PR0DUTI0N OF SHOPN WOOL, PAO1FIC NOHTI-IWEST
MONTANA, IDAHO, NEVADA, OREGON, WASHINGTON AND CLIF0RNIA
Pounds
130
120
110
100
90
80
70
60
0
1920
1 92
1930
193
19L0
SOJRE WOOL STATISTS, UNITED STATES O.k., 1OI9
195
nva:i £ r rzng
t
)fl
.' to six onths
ntath rrus
:
rLry.
1Of
f
e
1 r2t of
) fafl.
or t
.
id
b
1, JO t
io
or
or
o
en rouGe
IS
f
2,L
ttn, soi
9: i
in :.r
tLj
i:)r1s
ii
n in tn
i
L5
hOd1 with r
p
in
oui
1P
,
ire
n
1J I
r-2ur'poses
irtor,
'
),J
o
nxt
hay
i-i
e;to trut
iS2 Thr as )O1O13.
tE IDAHO DISTRICT
mountainous.
The greater part of Idaho is
Valleys between mountains has been brought
into irrigation. There is a large amount of suicr range
hut vry little desert or winter range except in the
south:otern and extreme southern part of the state.
iecause of the lack of winter range, the more
rIgorous winter, arid the abundnce of alfafa hay available
for feeding purposes, heepren became more depondent on
winter feed.L!g
ifly flckiasters have their own irrigated fa-ms on vLch ti necessary food for the sheep
is raised, while other b;y laro quantities of hay.
Flock masters have found that they get the best lambs
by using ewes of the na-#ibcuillet lcngwooi cross because
it Is well adapted to their conditions. Lambs are also
bred from rams of Down breeds, the i ipaIre being preferred because of its greater size and more rapid growth.
ihe winter feeding period usually begins about the
middle of D emoer and losts until
rch 1 or April 15.
Because of the long wtntr foedir
rIod and also because of the additional equ.tpmont for early lainbing, the
annual expense of carrying a ewe was considerably reater
than for the central range area.
TE ?AiFIC NPTI:3T In the Pcifie Northwest,
nearly all of the orignoi range not too broken or too
arid, has been homesteaded or purchased for whot growing.
Many flock masters in Northeastern Oregon who purchased
range for growing wheat have found it necessary to devote
their best lands to wheat growing arid by running a combination busines, they are able to keep down operating
expenses.
They graze sheep on stubble fields which are
frequently used for winter range.
Flock size in open range area ranging from 800 to
1,200 head. Soie princiDla sheep growing places in thIs
area have a carrying capacity of 3 to head to an acre.
In som.. desert areas, it takes 10 acres to feed a sheep
for a year reed
period in this area lasts from 2
-i
to 14. months Which i
:Longer than in the western coast
area where the winter is ii1d. 1.iiori given in this
area contains rain1y alfafa hay (3 to 14 pounds) arid
a small portior.t of grari. $heep during the re't of the
time are herded or r-zod on pastures.
Shearing has been done once a year. Sheep usually
go to the L.O.er range soon after shearing. ComereIa1
lambs have to be chipped to outside markets throigh
a 1orxger distance which increases the mrketIng costs
for growers in this area.
There are more pure-bred sheep In iiLl1atnette Valley.
Sheen in the valley is not a princIple source for farm
tncoiC. Flock size in the valley range from 0 head to
300 head.
ue to warmer weethcr in winter season, sheep
614
in the valley have longer grazing period. Feeding is done
shortly in winter before lambing for a period of 1 to
l months. Sheep in the valley are shorn in June or July.
Pure-breds, rams and ewes are gmerally sold as
yearlings. Commercial lambs re sold when they are
to 6 months old. They are mostly sold unshorn and fattened before sold to packers and stock yards.
THE EAST PLAINS AREA This area includes that part
of Montana, Vtyo'ing and Colorado lying east of the Hooky
Mountains.
Sheep in this area are grazed either on owned, leased
land or in national forests, because of limited ranges
in this area, the majority of flock masters in this area
are compelled to feed for a period of three to five months
during the winter, using alfafa or native hay. Those
living near enough to the national forests can graze
sheep on those areas for a period of two or three months
in summer.
The general system of flock manrgement is similar to
that in the Central Range Area. The sheep are mostly
crossbred, except in parts of Montana and Wyorntng, where
marines prevail.
THE CALIFCRNIA DISTRICT Conditions in California
are diverse, according to the character of the country.
In the northern part of the state, sheep are handled as
in those areas previously described. In summer, they are
grazed in national forests and on leased ttiiber lnds,
in winter months they are run on stubble fields and other
waste areas. During the remainIng time they are run
wherever suitable range can be found and some are winter
fed in a few localities.
In Bouthern California, most sheep era grazed on
wheat stubble, in vineyards and in other farm forage
during the winter months. They are usually run on the
desert during the spring months and are driven to various
places in California and Nevada in search of summer
grazing.
FARM FLOCKS A large number of irrigated lands
throughout the western states have been used for pro-
ducing feed for the wintering of the livestock in the
vicinity. Moreover, many of the irrigated farms have
areas tht are either above the irrigation ditch or too
rough for cultivation. These areas may be utilized as
pasture and sheep can be kept to advantage on them, besides, grazing sheep can control the eeds which grow
along the banks of the irrigation ditches. Therefore
addition to range sheep there are numerous siall farm
flocks scattered throughout the estern states and which
are handled the same way as in the fleece-wool states.
In the irrigated areas of Montana, Washington arid
Idaho, the keeping of farm flocks has been increasing
66
z'e provd
pr31trbi3,
(
to 3)
10 h
:-
1,
DIZLD
r
-r
thi vi
C',
'r
o
,,.--' 1.
L.
:1S1rR,
t'1t
1?
WO?'L
3c1U'
tu-
fLo
y1L''' L'
o:':
u:ts for
L'ntot
1'O
,
OOtC
?''- r'f3
),Or
dd
r
c?ici the
'tfiy
(1
oed mo Lo or
f'e whilo wrr t
OQ1 grov:r
th
rrr *1-L
to
IO f:'r':
Lt
;,
.:ici
tho
t;her-
67
MARKETING WOOL THFt)UC}J PACPIC VOT, GRO.FS
MEM13,R' S F.'1T IN HEr4? E G M .fJ.TIG TiEIR WOOL
Before
members send their .00i to the association, there are many
things that they cn do in helping the association martheir wool.
ket
Good shearing is the most important thing suested
by the association to its members. The association suggests their members to shear the wool when the wool is
absolutely dry; the sheep should bo shorn only on a
smooth, dry surface, preferably a planed board floor
never on dirt or straw; care should be taken to keep the
fleece intact, avoid second cuts wioh reduce the average
length of the staple; clip all tags, dung, locks or stained
pieces and pack them separately, never eriit them to remain in the fleece; fleeces should be prepared wth the
flesh side out, never the wether side, tie each fleece
separately, never tie two fleeces toatber nor pack and
market untied wool; use only enough tthe to tie the
fleece securely. Paper twine should be used. Nevor use
sisal, binder twine or other rnterial; never per'tt the
fleece to come in contact with chaff haydust or other
foreign material; place the tied fleeces in regulation
woo]. sacks; select a clean, dry place for storing wool
until it is shipped to the association; never permit the
68
wool to lie upon the ground or store it in a basement;
divide the burry, seedy, cotted, dead, black and gray
fleeces fror the clean, wiite, well grown wool and pack
separately; never pack all together indiscrmin.. teiy."!/
Good shearing saves the work of the association
particularly in sortLn.g and grading. It will keep their
wool in good condition so that a tatter retun could be
brought to them through less handling coats.
'3'
After members sent wool to the
assoctatin, it is weighed uon inspected autoattc scales
by U.S. Licensed eighers.
It is woighod before the
8ackS are cut for grading or sortIng. raded grease
wool handled in straight lots is again reweighed when
baled or put Into graded lines In bins, Thus all wool
handled by the association is weighed twice and checked
before the final invoice and shIpping weight is taken.
At the end of each day, receiving sheets are turned in
o the association office and cash advances and weight
acknowledgments are pror!lptiy msiled to each shipper.
The
wool then has been taken up to gradthg floor and is ready
for the next step In the marketing process.
GRkDING OF
OOLS
After wool has been oighed, the
sacks are out and the wool is placed at the grading floor
for grading.
Pacific ool Growers Monthly
Grading is extremely i11ortan,t in merchndising of'
wool. 'ery few woolen i11s use different grades of wool,
for very few mills manufature a lIne of wolon goods
that ranges from the sheerest woolen fbrLcs ado from.
fine wool to the produc1s which arc nde from braid wool.
Mill specializes in the iufturo of a certa:tn class
of fabrics eloying the use of only two or three rades
of wool. In that way they are able to ke
th ianufic
turing coats down, their investments in wo1 at a !tn:Lmum, and can buy their supplies to the greatest tT1vantage.
Thej are therefore interested only in buying certain
grsdes of wool in order to meet their manufacturing needs.
Mills like to purchase wool in lots of front one to ten or
twelve cars of a certain grade and cp.2nlity, and the
associat&o
is functioning as a large clearing house be-
twen the producer and the consumer by taking the wools
of its members, grading them into separate mill-sized
iota to meet these requIreients and suppling the mills
with partIcular grades each require. Thi3 affords the
shortest and most direct route and makes for econoi.ical
and orderly !flerchsndIsjn of member's wool.
3qyjfl. woo].
at random throuout the country would require the purchase of a goad deal of wool for which they have no use.
They may have to resell those they do not want at lose,
thus, they are speculating on this wool for whIch they
have no manufacturing use.
Quality of wool No two fleeces of wool re alike.
Fleece fron the same breed differ x.Ldely in tany respects.
io single sheep will grow wool of the sime chract
also, here can be just as much difference in crde, quality arid shrinkage between two fleeces of wool rLg out
of the saie general territory
Charncterstic of wool is determined by riany factors
such as fineness, length of staple, iasticity, crirp,
softness, plinbiity, uniformity, color, luster, felting
property and working property.
Good wool is that can be
carud, combed, spun, felted, woven, and knitted without
loss or waste, he natural. color of wool usually ta
called white, which takes d well in txtLie mnufacturtng.
The essential thing in .radirx is ieaauring
'ieter,
but, in actual grading, there t O mechanical maasurerent
of wool.
L}rading mostly based on sight nd iou
training skill. Light is essen
1.,
and
l to grndig, there
sould be enough light in greding room the best direction
of light is shining directLy eoove head. Too strong
light makes fiber to appear distorted ani irregular.
Blood system Blood syster of grading the wools is
based on the pure breeding fine wool which i.e called
mertno. All other wools ranked cording to their relative coarseness arid length of iber staple a compared
(1
with merlino.
orino crosses with British breeds
different cross bred sheep.
ts
British wools consist of two
iain classifications. 1. Medium wools - from down breeds:
Shroshire;
2. The long wools - from the British longwooled breeds:
(1) Lincoln (2) 1eioester (3) cotswo1d (Li.) Poney marsh.
(1)
srnpsh1re (2) Suffolc (3) Oxford
)
The cross breeds are mpde between Merino nd British breeds
these consist of (1) Do:r crossbrods (2) Longwool crossbreds.
Gree ners for !lood system are : 1. klf Blood
2. 3/8 end - Blood 3. Low and I. oiron and i3raid.
¶rhese ter's no longer have reference to the proporttoi
of different kinds of blood in the sheep. They are just
as arbitrary ters now-a days.
-
A rough surary of wool grades and the corresponding
breeds of sheep that produce these grades is shon as in
Table lit.
The grade of a fleece is determined in general by
60 per cent or riore of its contents 30 that a fleece
carrying 6o per cent or more of Cuarter Blood grade, even
though there is a little Three-eighths on the shoulders
and a little low Quarter Blood on th6 breech and bellies,
would still be classed as Qi.erter 3lood fleece.
72
t7
Wac)L OR? .f)3 AND
SiE
)W)I
T" 1
D
TLA T
:
unt
Crr ado s
Threeds of Sheep
Pro thzc trig
60.62
614.70-
Approx1r. to Tength
Required for Cornbtng
2 in.
ir Lno
Rnytbouil1et
Delal no
G1DE
ood
Spinning Count
Approximate Length
Jeqtred for Conibtng
Grades
Breeds of Shoep
?roduoing
Thrghee
'orrtodales
rossbreda
OTS
fl1t(T
Blood
6..c8
14.6- ;o
3 in.
3. in.
iaipsh ire
Shropahtre
Southdown
0xfor1
' orr I 1 a 10
Shropahire
Dorset
(rohreds
Source:
DS
e
tIR/ DE
Spinning
Iv
1ow Fnr;i F1.13k
co1s
H-ip&i Ire
Suffolk
Romney
Orosabreds
ro i4rketoJ Ly The
Pctflc ;oo1 Orors Under Th overnont Woo].
Purch:s ?rorin, .Pc if to Wool cro.'rs'
L3u1itjn.
73
Ld
Spinning Count
36.4iO-ljI.
Aproximete tserigth
Required for Corbing
Breeds of Sheep
Pro duo in
in.
I
Gr8des
omriey
Oxford
Cross bred s
to 6 in.
Cotwold
tecester
rin ol
In the "French Combing's grade of Fine wools
a length of only 1
nchea is required.
Clothing wool is woo]. shorter thsn "combing,"
as ltsted nkove, rvt is therfor loss valuable.
Tender wol contsinLng a ubrek rL the fibre
is also c1esed as
ioththg." Some of Lne lunger
clothLng wo1 can be cnbed witb. spoctal maohth
ery and rr o1.ied "bby ooibing.H
Grade t3 mr aurateiy descrilod by spin-
fltfl counts.
)itiru.flf count denotes t;hs numbers
of i1aLlc3 f yarn - eorI hank 6o yards in length
- that can be spun fron a poun1 of coibod clean
This, ono pound of cobod wool top of
60s spthntng qonitty wtil spin a thread of yarn
0 tttes co yrt - 3,6OO yards, or 10.09 rniles.
Jne pound of J.Qs will sth thrd ho times 6o
yards 22,lJO rds, or 12.72 miles. Therefore,
spinning counts re determinod by the ximuti
number of hank of yarn that c'n be obtained from
a standRrd pound of wool and oy the 1n:th of the
staple.
wool.
7 L.
Grading wool of a lsre quantity is a process requiring:
technical skIll obtained only by long years of ractice.
It requires experionce, ability and judint bh
nsbles
the grder to instantly recognize
of the fleece.
The associtiori grdors re iTifl
hV the q'alifications
and have long time experience in the wool busios. They
are J.S. Licensed Grsders.
Sdi2Pi i,3)L Shipping wool of ?cific Wool Growers
consists of two aspects, 1. ()rowers ship their wool froni
farm to the association w.rehouse, and 2. The association
shipping wool from warehouses to r'itlls.
1. Growers ship their wool from farrn to the association warehouses: .xion individuT1. rowor's wool is
ready to ship, the associetion mtis him a si'))in: instruction sheet. There are man: ioortant rircenbs
listed In the sheet for members to obsorve. In the sheet
the essocition Informs members about furnIshth bss and
twine to its meribers by contactin local ficidmen;
Members should tie their fleece with Daper fleece twine
and none other bee wool not tied or te3. with oth,r
than paper twine is subject to discount in price. Fleece
also should be tied with the flesh side out; Keep fleece
clean. Take all ta;s, dun locks, and stained pIeces out
of the fleeces and pack in parate sacks. Never pack
wet wool, as thia stains and 1eaens the fibers. e sure
the shtpping tags on the bags j.re marked plainly with
thoir names and tiailing addresses and nra securely fastened to the bag. As soon as their wool iS received at
the association warehouse, the association will forward
them an advance on their good wool. Secure two copies of
the bill of lading, keeping one and mailing the other with
the list of shipping uestios completely filled out to
the aaooiation, hen their wool is ready, it should be
sent with freight chrges "collect" to the association
warehouse. All rnobors' wool are fully insured against
fire from shearing until mill. delivery,etc.
The association has designed a questionnaire attached
with the shipping instructions. Such questionnaires oez
stating of intoriiation about when and how the niembor is
hauling this wool, is his sheep ortued or not, is each
bag taged or marked with owner's naie, brand and address
or not, etc., so that the association will be well informed before shipment arrives.
flange members will receive a cIotai].ed weight listing
sheet with instructions to ship either to the dock or to
a warehouse. Such lists destinating yearlings, ewe wool,
bucks, tags, black etc., should be filled in two copies
and mailed to the association together with the bill of
and answ;rs to shipping questions.
result will
be a saving on hrndling of wool and obteining better price.
2. The assccition s:hJps wool tc
lle in the east:
A
PacifiC
oo1 Growers ship wool froai Portlend warehouse
to Boston. Means used for shipping woo? to the ot are
by rail snd water, Throughout past yers, PacIfic ool
Growers has made its shipping by varIous railroads end
shipping companIes tr
ontinentally. In fact, all
railroad companies have seme freIght over same distance.
FreLght rate of all ehtpping companies for s given dis-
tanco is also the same.
Wool are shipped first fron nre CLse by rail or
truck to dock. Cons ignees in the e.st tP osition of
t1e WOOl at the dock,
The associatIon is constently trying to cut down
handling and clerical costs snd handle growers wools and
accounts in the most efficient end cnoriicl nanne. In
nany cases, the associstion aiskes ar
,o'r-ents for s1ip
ping with some one transoortatton OorLpiy be use rates
are cheaper or because of greater safety o. ervioe or
other benefits to the members. Growers in the three
Northwestern states we produce strictly fine wools which
the association does not bring in to the Portlenc. wsrehouse are sent directly to the associe t.on's 3oston werehouse from the dock or car.
77
All wool belonging to members which are in the couri-
try, in warehouses or on the ranch aie fully covered with
fIre Insurance. Wool which are not in the warehouse are
covered with standard insurance, those on ea are covered
by marine Insurance.
'r'''r
.
Li
The oconoriy of cooperative warehouse It has been
reported to the wool mreting meeting at Salt Lake City
in 1928 by a representative from Texas the reason why
private warehouse plan in Texas was unsatlsfactovy. ecause that there has been competition and dissnsion
between the warehouses, grower's wool wore sold too cheap.
E!e further pointed out that one wool growor ho ran a
wool warehouse because he could make aor monoy b eell tng
wool on cos!luission than he cou1i growing wool, aererore, h 1ectded to go into the wool warehouse business
exclusively. Lhis is why grower's cooperative houl3
have its own warehouse wherein the interest of tne mer.tber
would be theonly interest and the aervicos rendered
would be perforrned at cost.
warsouses of Pacific
Asoe iation
The Pacific wool krowers is the only growers a wool marketin; r:oncy, eIther private or cooperative, whion has
tJ.S. Licensed Wool earehouse facilities for storing
wools in three of the largest wool marketing and wool
78
shipping centers in the United Stntea, nnmely Boston,
Portland and Sa Francisco,
The warehouses of Pacific Wool Growers association
operatIng under the U.S. rehouse Ad'mtnistration Act
executed bv chief of the J.S, Deo.rtint of Agriculture.
mendments have been made to this at regarding to the
regulations on grading, checking on wrohouse, etc. in
order to facilitate th opratons of the wool growers
aasociation.
Besides Portland, Bpston and Sn Francisco th
associstion has a number of wsrehouses located in Idaho
F&lls, Michard Idaho, Shoshone Idaho, Burl'3y Idaho,
Blackfoot Idaho, Palisades Nevada and 'mdota and Maxwell
in California.
?ort1rid iarehoue When the assocItion was fit
organized in 1921, arrangements wore made for storing
wool in a warehouse in north Portland, strictly on a
tonnage basis, by the month and stor':e charges were paid
on the weight of wool that held there for the length of
time it was in storage. The offices were 1octod ir a
down town building separate from the storne facilities
S1e April 1935', the essoctation purchased its new
warehouse at
731k.
N. W. 1)4th Pvsnue where the present
head office is locrted. The new bui1dIn is a brick
li1dthg, located in the heart of the who1ea1e district.
79
Two etor18
oomprise bie bu1l:jtip
1r cpc1ty for tor1
rLd a
200 feet in sto wIth a
wool. Thr
f
top floor, also with th I 1i1ti ol'
truckge, rd cr and truck loading plrtrormz.
'rri
snc Isco
ci n excellent r
i
COO buchnna
ti
Prcirlc ;.ocl :rcr have
recjue in Sn Frircjsco at
stre:3t sce li.3 aftor thoir storage spaoe
at ..ir!lett' s h;ror Wa housi .o.
been outgom,
The n wareboss is oporatod :r1 bo.; b the Hc1tt
or&Iuo o&:panv and :to c.1lo:1.
tostory bi'ck b
and bøio:1t. One b11
its location. This wi
rLcir
1:o.;e
fi'.r
1
L71;::o Of
;houe
o Ia loo:
Buok street ioe the e.1 no1st a.r z:i tb
tdeql tor?
32
ridition for
sq..:
11 I
.
)
LOfl and
ba-j tnsurea
ont) in
iti the baaeient, It hn
f:&i. Witi
a volume 01
fo
ool as we ordinarIly store in
0Q() square foot of spoco.
The top floor of this h: ldn has no Upriht post5
or joists and mri ov3r O,0OO to
ly clear
grading space.
sLLo?ans Irvolvd In
seietLng warehouses0 Location seeta to be the ot
portant OtlO.
reho&ses best to be close to trrral:
aro 1any ec,uo:n.ic
eo
ii11,
dock o.
e3tMi fo
t
c'risi
t.
t. :.i
tIC
its
' t3 ,!I1.
tb.t 'iii. h
.f
t.'rs ,
ro
Es-'ic5. +1.r is
Trehr1us
iti
fr
artirt1 freL:ht
Ii lot.s
rdi.
ET
vhii 1r:
ctIFJtt' watch
Ct3S of
r3wer
b
'.1ot
i
ooI witJ:
soic
cS
anut; turer1
ii
t.:
)n ire
rf :'st't nr
w
t;Tt cutoae'a .ri :'.;h t
t)n war
iu.t
h ts the 1r
The n;ocntton h
r;
th:t;t
c3t !.onailf f,3
3
fc1ite
t'
oo1 w reou::e in that oit'
UThe
an
ert 1LretIy
ctre
Pdcw't3
,
tne
3OC1Ft1Ofl
J
The
wrhouea
'j'cwers
it;;
.
ttra
for t
Lfi
.r)'
''s
ex-
the mi7i tret.
ther
u,
SELLING WDOL
G
ETJOD3 OF WOOL
The general manager, R. A.
''rd of Pacific Wool Growers has listed out a number of
nethod8 used for marketing wool, those are:
"1. :r strictly cormiasion consirrment house plan
with cooperative features as relates to the
handling of cooperative pools shipped to these
houses for sale.
The sealed bid auction plan followed at many
points in the western range territory.
The accumulation plan frequently but wrongly
called the pool plan, wherein the accumulation
is sold as an entire lOt at a single price
regardless of grade, quality, or shrinkage of
14.
.
the various tndividual lots that may have gone
to make up the concentration.
The outright purchase plan, wherein representatives of the large Boston wool houses call at
the ranches and bsrter with the wool growers
for their clips.
Strictlr cooperative type '/
The cooeratjve marke
of wool from growers directly to miJ, osumers has been acknowledged s the best
methoda Tht niarIettng method elimtr.ates the various
/ Pacific Wool 3rowers Monthly
No.
314
tI't,II
S
s..io
nir.
bf1t
:)'
':U!
.1.311
UI b:
f:
Lir:u:i
, paid
301
(
ir i- of u1f-1 riii
ir
pori..
t
r- tit rts .'oi :t".r
r
-
ol tn
t1.
attv,
i.
i
tt.i
c'
.b-I14 ty
iii3
tiBiL
qiant1ty Or qw4ltty ii1r<j,
natntain IL:. )fjCt
1!
:Jni ti 3t
with ti1i
:)i
wtci irc
A cr.ratiyø
p3rativøs nd th
t3
f fu.i
th
I on s
L3r8 i
IA
ir
t
Ytet
erforir. both
own or
Fig.III & IV.
FIOOHE IV
TWE 000PERATIVE MTi1OT) OF MAKETIN"J WOOL
- AS DONE BY THE -
PAFI WOOL GROEPS
0
0-
acifi
Wool
f Woolsn
Orowers
1
The Orowers Agency
Whtch .4ssenibls,
Wrades, Bales, Ftnancas,
Sorts, Distributes
Wool Directly
To Mills
-J
Wool
r owe r S
Members
SOUHE:
Mill
This agency is cooperative,
rn by growers, does not
require profit and is operated
at actual cost.
PAIFI WOOL GROPS BULLETIN No. i8
Woolen Mill
Whtch Buys
Graded or
Scoured Wool
Throughout
the Entire
Year
FIJ}R
')
J:TY BLrYER MLT1D
V
F TAKTING 'AL
untrv
Woolen
ql or
'Juntry
Buve r
Lpr
dc)1
ERstern
Merohqnt
'oo rei',
Boles, Finncs,
ointrv Biiers
PeJdlr5
ounr 3tors
Sorts, Assemb1s
DIstrIbutes grid
ourI ry W re
:scourts Wo1
V33 1
G r w rS
Ths
3 eenrtes rqilre
-ost of sev10
th
ShJRE: PA
FI
D )L
a profit pti
rndere1
RC'F3 BTTLETI' No. 1
voe1en Mill
Buy!
Jreied or
Scoured Wool
B
Pacific wool Growers has many pools spread
out in its territory, those are: Western thington and
Oregon OOi Northwest Farm Flock poo1, northwest Range
pool, California Range pool, Nevada Range pool, Nevada
Par!n Flock iool, iuraboldt Court, CalIfornia pool, Central
aiifornia
Flock ool, and ohair poole
Pooling means the commingling of products of many
producers and, after deductIng average eypenses, naying
POOLINa
the average price receIved for the se Juring a definite
period, usually on a basis of established rades."]j
In different pools, member's wool are gsthered together according to simIlar grades, character and shrinkage and from like territories,
The pooling practice can be best explained by 11lustrating en example. !s3ming, there nrc three growers
A, B, and C. DelIver all the wool and place them In a
certain pool, and that
Now
A delIvers 2,000 pounds
B delivers t,000 pounds
C delivers 10,000 nounds
A would own 1/8 of the pool.
B would own i/ of the pool
/8 of the pool
If every time 1,000 pounds of the wool from tht pool
C w3u1d own
/ Bakken, Henry i. and Scharrs, Marvin A. "The Economics
of Cooperativ Merkettn" New Yor1 and London, M.cC}rwHill Book Company, i9L7, p.
0
is sold, it means that
ounds or A's wool is sold
250 pounds of B's wool is sold
ô2 pouncs of C?s wool is sold
125
But, as long is the ascition has any wool unsold,
it belongs to e'3h of them in the se proportion as they
deliver to the tool, wiich is 1/3 to A, i/i. to B and 5/8
to
ri u!ed by the association for
pooltnj farm flook wools. Jari flock wools are alway3
pooled with other
flok wools of stmilsr quality,
grade,
eral ch.r teistic3 au1 shrinkage0 When
This method has
growers wool rchs th aiocietLn, it i w;ighed iiis
nediately and noticed to ti :e1bor. The wool then
graded. by a U.S. Licensed
to the graIing deprtnent
Grader. iach fleece
then p1oed in he bin containIng
wool of the saiie rEde, eneral qnality and per cent of
shrinkre delivered bi othtr growers. The wool d1ivred
i or more bins.
by one niember m&y be dci1.i:rod int a
vu.gt of each meobor!
The association keepe the
wool going into those bins.
Another pOoiln prctie which i.e celled the clean
price pool basis has also been used by tue association.
While average rar.e clip Is too small ifl quantity for rn11
use by itself, ..n:i from the mill stsrpoint, even the
uniformly fine clip contains many nill sorts and these
sorts must be tken and combined with others wool of the
sa:o sorts to mako a sufficient blend or run to put through
the machinery. Jnder such circumstances, a clean price
pool basis Is better used.
This principle has bem used by the associatIon for
pooliig cross-bred range lots or uneven farm flock wool
and It can be illustrated as follows: Suppose range clips
of similar character and grade would be sold on a clean
price basis. The first five clips are sold at 1.OQ clean.
Each clip would receive a grease price based on actual
shrinkage, grade and percentage of staple. upposa the
next five clips sold at
Agaiu each clip would
receive a grease price based on its actual shrinkage and
grade. Suppose the next five clips sold at $1.10. If all
the clips were of equal weight, the average oian price
is
The clips would then be setbled for on shrinkage
at the average pool clean price, which can be illustrated
as follows:
Shrinkage
Grease price
per round
62
7l
il Pricss used w're in 1927.
1e an prIce
perpound
/
88
Thie plan has many advantages which are observed by
r. vri a:
It eliminates speculation and the holding of
clips
2. It secures the fair average orderly marketing
price for the grade in question, and over a
"1.
prod of yers is better and safer for the.
roer.
It permits the selling of association wools each
month to iiil1 customers in aocordance with
consuaption.
1. The rowar baa not to carry over wools.
.
It secures a high average price for all wools
'witho-.t speculation for possible peak prices 4/
FIiJIc
(JNDE.R PACIFICS POOLING PLAN
Be
tween the time of members delivering of wool and its sale,
msmbers A, B, or C or all of them may need rianey. The
association has been borrowing money from the Federal
Internediate credit Bank or one of the large city b8riks
at a low rate of inte,rest and loan the money to the growers.
Grovers are entitled to reque$t a loan fron the assocition upon th delivery of their wool. The amount of
the loan 5s about ôO of' the valuo of his wool.
The way the associatIon proceeds with the selling of
1/ Pacific Cooperative Wool Growers Bulletin No. 3t.,
- Sept. 1926 P.1.
89
the wool is such; The first money received from the sale
of A's portion of the pool is used to repay the bank for
the m:'rtey borrowed from the bank and passed to A. As
soon as enough wool. is sold to repay the bank the 9880-
elation stops paying interest to the bank and at the same
time it stops charging A interest on the money loaned to
him.
As more wool are sold, the balance of the money is
placed to A's credit. After al]. the wool from the pool
has been completely sold out, the associstion sends A a
detailed statement showing just how many pounds of wool
he had of each grade in the pool, the average price
each grade sold for, expenses on grading and selling the
wool, freight psid for the grower's account, etc. and
sends him a check for all balances due him and the cancelled note which he gave to the associstlon covering
his first advance.
The settlement of a pool must be conducted after all
wool in the pool are sold. The total deliveries of A, B,
and C make up the pool. Each grower hs different grades
of wooL. If 90 peront of the wool has been sold from
the pool, each grower still has 10 percent of their wool
on hand, therefore, they can not expect the settlement of
the pool.
90
STRUCTURE OF WOOL
Wool prices in the United States
are determined
and based on the prices in worlds two big wool trading
centers namely Boston and London.
Wool prices at any
point in the United 5tates equals to Boston prices quoted
for the vary grade minus shipping and hsndling charges
from the production point to Boston, whereas prices in
Boston is strongely related with the prices in London.
Factors influencing the prices of wool are many.
Cost of raising sheep in the range; The comparative ad-
vantage of cattle industry to sheep industry; Competition
of cotton with wool; War; business cycle and the price
in international markets are the main features.
In
great many of ranges and farms, wool is a by-product
of mutton.
When beef prices rise, range managers wfl
intend to shift sheep business to beef cattle industry.
When cotton prices comparatively goes down, wool price
ill be suffered, due to the substitution of cotton for
wool0
During 1910, tiiere was a rapidly growing corn-'
petition of cotton with wool, which caused the wool prices
at a lower level0
Generally, a revival of business brings
high prices for wool.
A raise in London prices causes
a raise in domestic prices.
High prices of wool tends
to increase the production of sheep, which will increase
th production of wool and in turn decrease the wool price.
91
THE EFFECT OF GO
iNTENT !EASURE ON WOOL PFICiS
The Stasgall Commitment In 19)4 in Public Law 7t1.,
Congress directed the CCC to make loans on the 19)4 basic
crops at 8 of parity. On July 1, 1914 Congress passed
the Steagall Amendment in Public Law 117. This Amendment
extended the price floor to nonbasic crops whtch has a
strong effect on wool prices since then.
The chief objective of this Amendment is to direct
the Secretary of Agriculture to"encourage the production
of any non-basic commodity, to support Its price through
commodity loans purchase or other operation at not less
than a parity price of 8 or comparable price." In 19I42
Congress enacted Public La; 729 again ephastzed the use
of price floor was to expand production, In the mean time,
raised the parity.
Inlatter 1914j., the War and Postwar Price-support
legislation has specified i66 agricultural commodities
into three groups for price support operation, those three
groups are:
BasIc commodities - corn, wheat, cotton, tobacco,
rice and peanuts.
The Steagali Commodities - hogs, eggs, chickens,
turkeys, milk and butterfat, dry peas, dry edible
beans, soybean for oil, American - Egyptian cotton,
/ Shephopd, Geoffrey S., 0Agrloultural Price Po
211-2 2u.
" pp.
92
potatoes, and cured sweet potatoes.
Other Agrioi1tural Comm..odiies
commodities
other than 1 and 2 - wool, naval stores, American
hemps, sugor beets, sugarean, black-eye peas and
beans, certain fruits, vegetables for processing,
barley, grain sorghums, rye, Sea Island cotton,
certain vegetables, winter cover crops, hay and
pasture sceds./
Corrrtodities belong to group 3 consi: of about 1/3
of all agricultural comrodities, The law also directed
the Secretary to suppo.r the price of rionbasic agri
cultural commodities at not less than 90 per cent of
parity through a commodity loan, purchase, or other
operation.
Since the 5teagall Amendment, the price of wool has
been supported and the Commodity Ciodit Corporation has
accumulated a stock of wool. At one time the stock of
wool of the CorporatIon wee equal to a years supply, however these lerge holdings have been greatly reduced by the
rapid recovery of the wool textile industry in the western
Europe and the high level of consumption of the rest of
the world.
Prices paid by Commodity Credit Corporation for
medium and coarse wool have been higher than market prices
3/ Shepherd, Geoffrey S., 'Agricuitural Price Polio;
21l-221i.
ft
pp.
23
and for fine wool lower than market price, therefore the
stock of medium and coarse grades have been increased, The
prices paid by Coirrnodity Credit Corporation are sdiusted
on year bsis, so far, it has been in favor of medlu.
coarse grades all the tiie. in copetinp, with foreign
and
markets, the CommodIty Credit Corporation has been selling
wool at 8 to i6 cents a pound, clean basis, below the
price it has paid to the producers 4/
/ United States D,A. "
pp. l-2,l.
December 19L7,
91
EVJ7J\ TIO OF
'OOL
IT?I
ES
ASSOCIt TIOIT AS A fI RKTIN.i AGENCY
Pacific Wool Growers offers almost a complete service
in wool marketing. It services varies from warehousing,
grading, financing, to selling of wool for its members
directly to mills.
According to statistics, throughout past thirty
years, the members of the association did receive higher
long time average returns for their wool than non-members
received. In a printed material of the association
called "How Farm Flock Vools Are Marketed," it indicated
that from 1921 till i9J, members of the Pacific ool
Growers have gained over the average prices paid In the
country at shearing ti in 19 years of 2U, or an average
yearly gain of approximately 3 per pound over all years.i/
The cooperative members are enjoying such a benefit due
to the fact that in recant years the country wool prices
in the western Oregon are
closer to Boston manu
price then the time before the association
was organized.
Pacific Wool Growers
Marketed."
"iow F
ak
o,1s Are
The following table gives detail information:
TP. 1LE V
SPPD BETVEN C)UNTFY PNr 1*)ST:
j1
J1
P
nod
before Association
Pacific Qrgnnzod
Period of Growth
Association W011
Established
Yea
1918-1920
1921-1ç23
19 21.-l9 26
1927-1929
1930-1932
1933-193
1936-1938 and on
?ICES
Avera.e Siread
21.65i
17.65'
1 . 9i
9.30'
8.7&
8. i
Wool5 cocipred aro Vi1iai,tte Valley ungraded
wool and 3/8s combing.
Source: Pacific Wool Growers 'How Farm Flock Wools
Arc Marketed.
A number of factors contributing to the success are
summerized as follows:
Good Management - The overall success of the
association is a product of a long time competent service
of the managers. Their abundant knowledge and experience
in wool business enables them to conduct the association
affairs in an excellent manner.
Sound Marketing Polioy (1) By actual experiences, Pacific Wool Growers
has been selling ool through two different methods.
The
96
association has bean selling the fine and half blood wool
outside the governrent program for securing higher net
returns from private mills while marketing its lower
grades or wool such as 3/8s blood, i/! blood, low 1/is. and
all the off wools such as tags, locks and crutchings
through CCC.
Under the United States Government Wool Purchase
Prograri, growers are receiving from ioi to l a pound
more in the grease than they would receive if the pxgram is discontinued. This is because there is large
quantity of foreign wool and domestic stockpile wools
ar available and are being purchased by mills at prices
which amount to lO% to IØ' per pound under the prices
which CCC is permitted to pay.
(2) The correct timing of sales:
This is a
difficult task, it depends greatly upon the ingenuity of
a manager, storing facilities of the association, as well
as the financial condition of the association. Regard
less of many difficulties, such tasks have been sucoess
fully carried out by the association. Some surveys have
been made
re7eahing that the consumption of wool falls
off about shearing time0 The drop in consumption combined with a carry over of WOOl is equivalent to a full
years supply and has a depressing effect on prics4/
E.B. Mittelnan, "i4arketing Willarnette Valley Wools
Through the Pacific Coopsratve Wool. Growers,"
Agrtcultural Experiment Station Bullettn 260, p. 12.
97
5ecaue of these characteristics the asocl&tion
has withheld its wool from the nmrket in the early part
of the yesr and has turned it on the market toards
the end of the year. Such policy puts member's wool on
the market when demand is high and tende to bring the
meibers a higher price for their wools.
(3)
The asoj ton initiatcd
wool grading
system along the westexn coast which contributes a great
deal to th standard:zed wool xri:eting.
ie ssocition dopted Clean Prco Pooling
14)
plan which has many
T'
in tor1n
a
in.v
been discussed b'fore,
ssoctj offers great facilities
1e1oer3 wool
xnaos
hi ai.s problem
perfactly under control.
(6)
woo]. whie
The asocintton hardlea lare amounts of
riakes an econo-.cal rnarkoting posstble.
3ervice at Cost - Private business is dependent
upon a margin above the costs of rend3rtng ls sorvicos
but, cooperativ3 busthess has different purposes. It is
conducted at cost and 'ithout profit.
3.
It is impossible to figure the exact costs of any
transection of tho associtton. The agregate costs over
a year of the association are allocated to the different
services. The povr to arbttrrrily allocate some costs
is reserved for the directorate.
98
Risk AstuptIon - hon ribera' woole re in
the process of being sold there is a considerable risk
assumed by holding title to and fthancthg the wool. Wool
easily may be danaged during shipring or vtsit is
stored ifl the warehouse, In order to protct its members,
14..
Pcfie Wool C+rowers association have provided means for
ass .m!ing the risk of its emhr s wol. It thiiizcs the
risa w.iich the individual producers assume by reducing
the number of transactions between the growers and woolen
mill consumers, on the othor hand, it has an effect of
stabilizing the market.
In pooling process, the association handles a large
quantity of wool. This has an effect of spreading the
risks which result from terperary thequalitias in the
markets and reduce the per unit handling cost for the
as soc iation.
5. Dissemination of Information to Jcmbera - Coop-
erative marketing association performs a fort. of collective action. Such kind of or.,anization requires a
high de.roe of fCtiol coordination.
Throughout the
past years, the association hs been using many nieans
to 1n1or.a its members about the activities of their
association in order to attend the full meaning of deiocratic control. Members need to be thforiod about the
s1tution o' the aso1ntio
proothg or
concerning pro1uct1on,
rkt1ri of th1r producti
th
it beal'3 a task of educttn thr mber'i.
th& mntinrn,
100
BIBLIOGRAPHY
.
Bakken, Henry H. nd Schaars, Marvin A. The Economics
of Cooperative M keting, Nw York and Lonori,
McGraw-Hill Book flrany., 1917, p. 63.
2. Breithaupt, L. R., and Elvera Horrel, "Oregonis
Farm Products for ia.rket 193619LO'
Bulletin 614, Sept. 19L!., Federal Cooperative
t1,t $errice, Orci Stntc
!nion
le.
'ancd1rt
3rt,ive !oo1 rowrs, larroroi1 rn.dir of Canadian Fleece Voo1 Under Standard Governrent .c..1at1on' Toroo p. 7.
Jimo
. 'licooratve Msrketth of
Wool" Farii Credtt Administration Cooperative
search rind ScrviLc
May 1939, p. 8'
.
viio, 3uls tin No. 3,
Coon, James M., Randell C. G.
United St'tC3"
i1-ed Sq'
"Wool Auction in the
D,. Fii rodtt Administration Cooperative reaerch and service
divs1on speci1 report No. 8.,
y l9Ti,
.
17.
Conodt tv FLxchancr ...:11tnistrntjon "Tradthr r ol
Top Futures" Circular No. 6oL. U.S. Depa'tnient of
Ar5.cj1ture 19Y1, p. 111.
DeLaoch 1).
9.
13.
"ri.eing Oregon
Pepartmcnt
of Agricultural Econoxiics, Oregon State College,
Typewritten p. 9.
Edwards, J.. Donald "The Effect Upon th liviltn
Market of tho Thrtjme Control of Wool and Wool
Products" TTniteQ Stas Dep'tiLt of Lbor,
Bureau of Labor Statistics, April, 1914, p. 30o
Farm Credit Administration "Using Your Wool Co-op,"
"You
nd Your Co-m,
rq." %hinton D.C., p. 12.
1
Faire, .E. and P.iitnney T.D. tManain Farm Flock
Shop for Gretr Profit tn Scthern Id.ho"
University of 4.dao ixper:!nea :ati
No. 228,
rch, 1939, p. 1.
Fet.row W.\. and Eisviorth F.}T.,
r1u1tur1
Cooperation in the United States,
AdmLnistraton, U.S. 1epartrient of
EuI1ein
April 19)47,
iieariig8 of Sevolty-1'ifth
FLr
CrcdLt
gricu1ture
p. 203
Oongross Tñr
ssIDn,
'Irivstigat1on of the Production Transportation
and iIiarkting of ooi" united
Prthtth Dffic,, s3hthgton 1938, o. 382.
)nii1ert
Hearing of
vntv-Ninth ConRress First Session,
"Invustigation of the iroduction
snd Marketing of Wool" United Sttes Government
Prin thg Office,
1933, pp. 91Oln1.0.
fiulbert,
Tiarsprthtjon
L.3. "Le.ul iii
of
oopor;Lve 1oc
atlons, U.S.
prtient of Aricu1ture Farm Credit
Administration ul1etin No. 0, My 1942, p. L32.
. and Hill John A. "P:rige
!oo1 in th Seventeen estern St;esIt
)ohn iley and
Inc. 19L, p.
Nultz, Pred
.hcp
37.
16.
iciil1au A.A. "Cnian
TJoiy1iofl of
bii1etin No.
oo1
dth:
ew
York,
nd 'r:tng"
nada, Department of Agriculture
191, July, l93 p.
2
L. -20,"
bureau of Aricu1tura1 Lconomics, U.S. Denrtnient
Lgriclture August 19)43, 1L ici1tur.i
tcry
SerIes No. 6, p. 38.
18. Mlttelman, F.I. i4rketirig Wiliarette Valley Wools
rou t: P31fi3 Cocparat
0roier,
Station,
)regon
State
College
1(.
Myok, ..uuru.as
p. 23.
..
T:
vin;uz2t: anc.
tetin 3u11tlz io. 2.'0, ibrui'y
1930,
01
(1.
Mitte].mari E.B, "Wllamette Valley Wools in Relation
to Local Consumption" Agricultural Experiment
Station, Oregon State College Station Bulletin 261
February 1930, p. 23.
Pacific Woo]. Growers "How Farm Flock Wools Are
Marketed By the Pacific Wool Growers tinder the
Government Wool Purchase Program" p. 14..
Puhr M.C. "Farmer Co-ops in Oregon, "Spokane Bank
for Cooperatives" Spokane, Washington, p.
Pacific 'O:I Growers "Pacific Wool Growers,"
Monthly, 1921-1950, Portland, Oregon.
Publisher's Editorial Staff and the Supervision of
the Supreme Court of Oregon "Compiled Laws
Annotated," Vo1une V., Bancroft-Whitney Company
San Francisco 19140.
Scudder, H.D. and E.B. Hurd, "Graphic Summary of
Agriculture and Land Use in Oregon" Station
Circular 1114., Agricultural Experiment Station
Oregon State College.
Shepherd, Geoffrey S., "Marketing Farm Products,"
The Iowa State College Presa, 19146, p. 1415.
U.S. Dept. of Agriculture, Report and Recommendations of the Wool Advisory Committee, "A Prom
posed Program for Wool tinder the Research and
Marketing Act of 1914.6." Washington, Government
Print Office, June, 1914.7, p. 39.
United States Tariff Commission "The Wool Growing
Industry," Washington Government Printing
Office, 1921, p. 592.
U.S. Department of Agriculture Bureau of Agricultural Economics "Wool During World War II"
War Records Monograph-7, May 191.4.8, p. 99.
United States D.A, Bureau of' Agricultural
Econonhic3 "Sheep flgration in the Intermountain
Feion," Jan. l9t2, p.
6.
United States D.A. J3urosu of Agricultural Economics
"Wool Statistics," Washington l9t.9, p. 66.
tjnited States D.A. "Agriculture Statistics" l9L.9.
i..nited States Tariff Commission "Wool Prices,"
Report No. 120, Second Series, p.
Voorhies, Edwin C. and Schneider W.E. "Economic
314..
Aspects of the Sheep Industry" University of
California Bulletin I73, September 1929, p. 172.
Walker, J.F. "Some Factors Affecting the Marketing
of Wool in Australia, Now Zealand, The Jnion of
South Africa, England and France, United States
D.A., Washington D.C., p. 92.
'
ict
A F1'LS OF
T)ç
IN
U
RS
ae(ordRnoe wth the provision of Choptr 8, Title
2, Oregon code 1210., reIt
to coo,rttvg aso
1 tion doptod th following Prttolea
OiFIti3ns, the
at Aasooition:
t
cYon shIi be PAWI
he naii of tut.
/')OL
/ ('fl fflS.
Tr
Th3 purposes for which ths s2oitton l.a forn
prnote,
(a
rid
co.,rq
tw inteli1.gn
and orciorly mak,ttng of vmoi. rid ohi.r products throuh
tr
cooperation of nenibers; to e1iminte or rnthim1z specutlation and
Lab1iza the .arktti; of wool Rnd
riohnir nd th,i byproiuot, nc1 to htnfle arid o1ve
cooperativtiy nd coi1evely o tr a posih1E, in 4n
orderly nd c toiicl rimi.r the i9.rket1ng prlm of the
roducos of ':oo1 and rahir.
(b) To rovid n medium for uty ot efTort by ro
thzc'3 in the han'11in- ii erketn of wOol and iohair
nd theIr byrothots.
(o) To proiote, foster ind enu'e the businee of
producth any and RI]. varIeties of wool and toh1?.
ic
t!v'ty
ri.
etor
n:tior with the
.i
z::::.r;;.
r
Iriy WO)1
zthair or irodwtis
)y-p;xucs,
rie r) v.oL mii.''r
i1i,i
!) &r,
r Lni
h
r their
1
t)fl3.
(
clt
Ji
)
ircii1:o
qkcL
r,rr
r't.:.e
r smp1a
Jfl
4ifl t1n ed
.. i
)\
t.tlO
th ny of th
t.
4ctirfl or
or rtr"n th'of.
(r)
''
ft'ts wtth
ritr. 1nt
req ir'irp tr
ibr8
v'
:r thr:
tIit1.'s
t
:1i hrer
)Y
t t I n.
pt3 ic1 )F
..3C;4rtt
i3ue Dn:
oblit Loris,
1
tr it
)(i
e
;i t)i ?i3
3'(1 oi.1ig ti)!lS
W 'rY)?li O t
.1
icô
(h)
To loan money to members, and mke
dvaneee to
members and other patrors on ,ccount of produets delIvered
to It, and for other proper A octtn puroes, and if
dond advisable, to accept az collateral for any loan,
warehotse receipts, chattel mortgaes, deeds of trust, or'
any oth9r kind of property or
uLt.
(I) To buy, acq.iie, hold, own, lae, soil and
otherwIse diepose of
1,i ortvIieei of ownership over sucn rel or r'oniI property of any
eter,
whrver loceted,
yb
or desirls for
the eo:duct of the bosiness of the Assoetation or in'ø
strumental treto.
(j) To 2uarntee, purche, or oth.rwtse squire,
own, hold, sell, assign, trnfer, mortae, pleo, Or
otherwIse dispose of oertificatos of embersMp, shares
of stock, bonds, comnerciai paper, or other evIiercos Of
indhtodness cr.ted by this or other corporations nd
w,!itle tho holder of sieh sMc'.rIties to exercte all the
rthts rind privIies of o'..ership, inoludthg the right
to V)tt: t-iereon.
(K)
To py f.w, tke out, rwqiIre, own, use
nd
dispose of trado rrirk, copyrights, patents, necessary,
convenient or doiirro1e for fu.rthorthg 'T f the or
porata purpose of this AsacItton.
7
To at iis
for &ny ,ur'
I
of the atovc
ert, r6pJ 4rItfitt1Jo, ft.cto or hrocer
covportio, or assocation, th nriy
tvItes,
urevez tiii 'otatton
in the products of othr tinn it
(rn)
1
to deal
Lven
such pow*1
shall bi restjoLj so thit this A ooitLn srLl not
dai in the prQuuct3 t4
ibors
c
n r.owi1
reater ix
value than uah as re
(1A.O
b it for )tb
(nj The objeta
shall, fl1SS otherwts expressed,
Ln no ay ii'r!.ito Or istrced oi rsfrnce
to inforen tro
oi iy ot.ier claue or pei-
graph of teso Aitcl
of Association.
Th. for,o
.mir
t apocific powrs
snail not o neid to itrit or rotrjat in ar
nr the
ooers or thts A octetiort but said Asoo.Lstjon shall
(a)
have all the prIvil,e ind Imnuntti
Pcs or
,1 th L;rited Stt
3t&t
of Or)n t
2.)Op:.
a3
b
t'e
d te 1aw nf the
iLi)rI
sub-
jt orTLy t such 3tr;tois an li it1oia as ;rsy bG
cntairied in said acta of n-rss and the las os.' $nU
Stite, It Is tiirther OXpr3sif proviLi tht this Atsoiatior shall have fll, complete nd
powar to canin and transt arw 1awfL oims w1I&tovr, ani do
aiy and all tin;;a r1oe r7 t:roftre to th sai extent
as .ny iororatton or nntural person iiitt or could do,
>1
I
ic8
as principal, aerit, ftor, ooti'n.,tor, trutea, or other'r n copnny w.th thuru except as auuh ))Wer niay bo rasttctd o 33ntd by th rt f Cmgres of
the Jnitd 3tat or th iws of e 3tne of )regon hptwi!se, alone
th-'above nentiored in thii PP.ragrfp11.
f
trp f 1Th1
)f
itim bl1 b
tt
t th
?:1 tno.h,
,
t
e
rtind, County of
hit
tr
:rrv1
the
JrL1.tc1 Stnt
eitton
f'z
of
o thor e;n.i tionEl
or ny
i1d be perpetual.
V
i";i1 rt hive
he.
of buet
o1rit i:itthin tita stqte
The urtin of this A
bi sbn1.. ' 'Fiit
i
of
w
o:f
Thts fz :o
cc-
inr
.'ttrl stoc
oe1Pticn unon paynent
unon such
ne 1.ic.r (1.C)O)
'rr
the
e provi thd n ths Bv-Lws,
..,.... i-.-
The oondltion$ irn1'r w1ah i
*riip vT i
i;rfl3
terred are as follows:
ternberaMp in the Association may be transferred only
to a prty who is eligible or qualified for membership as
109
provtdod in the fo Lo.iri:
nt tiiW1
rsmic rui
;t1.
;:aj!1
tt:.o1oa tnd
t: bi.h
Lir ;)J-
O.P_
1nu regtiat1ori
ct' in eiii1e trqnaf
cf the
aii r
iuthoriz.':g the cceptarioe
o;ttr; c ir.ber the
iae
g
ishi; c til
.
t,e
quir'es
trrsferee
A!'
f DiwLU. aica
tIJP8
tVr
of
x'
t
3
t
£qcire
.
O3OX3 tfl tUt
dI
and
or
cIce
i
the
ti"r m.y
ntit s&i io s1
ic uie Of tPFn3ter
2t.ttCtc tO
CCOP OX
repx
z'
prtate rn3rsJ
:Lj
rcL.
I
iuh :.OT)t3r
o;' fI.
Rnd
pproUC-
k op
ttar t rtg1t
ertiftca, to a prc.t&r at 3r.t.in 831$ 5md any
j Qp8ratiri oi iai, pth
A3cs8or ti o1i'ibi ifl acczr:c tth the following
Arti1.
AhTtctL; VII
Any perion, prtnrshtp or OoD)ort ton $ngn'ed in
producing eool or 'whatr or own Lng or 1oaath a rArm or
ci or 'iohir is producod and sflaring th
the profits therefrom may be n1itted as a ieber tnto
the P.soc1tton, nd any aorporattve marketing assocranch on whtoh
iatiori mrketLng wool or mohair for producers,
tay become
110
a rnembp of the Asojtjo by exec1!tn7
contract, ind upoi Lprov*1 of the horj of flirc'tor8.
P
!.t.;:j
r
O3 mt
Tt
t
i,
tune t 1. on on
'p-
uqi oin.ftt of ttø
it'r-Lnj iv t ior1 "t Dlif ti A1soeitn, nay o est td each year.
ti
rvs pwin rtIl
rei
:in
fo
:u'y
'f
J.tDi J:iJ b
th Asoc.ittor, iv1u.t1ng
rotre ()U 1;.djn 1oars,
;;
rt
.1
tr
t)fl
AR?t(LF TX
zhr1l hv
po;v,r to -'rt In
the orpntzatjon of, rn1i-r to *f?tiite with any regional
Th15
or' nettonal eies
'ir for
the product hRncii,d bi th
th
'oop
ocii
of
rir of
s
ttutn
fl:
.);rflt
£
Rnd
a
03.
COO :14tiVC
b:
rJij
pt t-
1ws of
R
do ho
S1C
The Durposcs for wtCh tt
set £or ¶n
nd rrrh
ecir
ontion I.
of the frtt&Les or
tn.g.
h ti or
ot DIr- tc,rs, m t
at Febrry it'ter
dIret:rs
$t!L. Cb
)rC)vt1Ed &c irt
S
il 1ect.
ordme w1ti 't;ht
A
ioet1ng of
or p1e
:innod by the
1b
mbors
vidod. thR.t
foried
Of the Aocttjoyi.
AS3OCtatjOfl
th
ctetton
p1tr
s
11
the 1t of Jiry nd the
e
rroe if
bs1v
ie t ing
C'1@
before
V1d by dtstrtit
2, C)f the
:iitor
t1y-isv., p
shall be hH in
slrms of .rt1Cie III ec. 2.
11
speoL1 oetng of
ho iieibers
by
r the Pres1chn
ot Djrotors,
1j'wLt:T of tn
..
oent Of ti
and ata11 atco
siah neetn,
isins
co
al meetIng othor thi
eI ietL
the osil,
n per
'Dr i
uch ccii :w1] b, ir writ)1Ce 1c1 tb, p.rooe of
hI1 b t isvtd t a sac-
a is
the poae
.strots a
2, of
providsci
ti.tg 'm Ptttion.
(a)
denanded br petLtt:n
iT
t' ntv
r
i.en
fl
1i' or
iot:n of thc nbrs
ut be ie1d rt Portianc, )ron, or
evr the office
of the SOCitifl t 1oitd, 1n:terct of by i1tr1ot.
r'
Stion
i
tI',a of
tti, o1 th
notIe ri'ist stt;o the
each
ai1
te pine of th
nd the OUP)O)3
tied tO OC
sa11 npoe)r
ten ( 10) thy
rti.cin
'h s)3cts1
ieniber
shsll
£
SU0
b
flOt1
ettng,
ni1 be
s his a.th'ess
Of t
too bok
the 83)Ci9t.i3fl,
IOR.st
or to the t H'o for ho1
such meetth.
octal
h. Qiioe
Not.oe of
oO
00)7 Of
tvo.
1 for SIOL
11
to eh
:
per pon the books of thc
as
.;ootRt,on, at least
Y3
ten. (10)
;rc
eattng.
7
ocit3r t: h;1h ne
;it
sd fr'i dMtr*tt
1i:ti
Qfl(
t
ber
t3E3fl'-
ont tu t.e
Ict
idiri(
ad br hilt hR1l
tio
)r
.fl
rirrt for Ru prpos.
rtt
ri.j
thc
rJfl OX'
a
nbers
rpEmt-
n
13,
V
to one Vol
Q
tnn oer
r it
in th
of the
ery
or
rn
rTne;,
in
h'11. LO 8fltttier1
pToviied by
xr
Srtton 7.
sn,tPl vtth
prepsr
bellot rlDn
L) 3CY)1(T'
up o
p
uIq .11
al org w t thø no
s:pJ
V)t.1ng
etrj shell
l O38t'Ofl8 t) b vottd
tton th.
Of
ye
Et
ora
ners"ipij
L)r:rt
t ntd
ng t;hc Seort
'iofltniririg his v:t, wt}
tht the vot1ni
vth
a
nvtJp.
xour
3.1On
I1t
V)8 n3t
st his bJt b
Jie
3t
I
fr?
)1TSr
by
o iv ion
hM 3
nto th
hot box
pre1flt tn parson.
TIe Seoretry ahRli thon file
zrt
votes
Lçned reqieat
f t-'e
I h-;
nd
zr were
2flt Rn
:T
irti
:
f 1.rt.rb
:)Rrd
t1on 1.
rd
11
DVot'
ftr d1rctors.
oyd of
duteci .nd
;
rit
te ret)r
oh iirctor sr1I vot I,' a icer 'f
a1l
the
pr3snt tte
nd
iV
rt of
t
1
s t:
othr t't
The oraniz
nib r.
One of
3
di re tr
clition but
1-he t
'li have
he].i be ten tn
2T) ¶ntd by the
1 .1
or the
V
td tt
ctrs
entt,ned, rnd the
a ettng held
he ofe
of the E\saactatlon
ctorL shell hold
oy .tl ;iLr su
e1e' ed
n
f t.r
ntianed.
2.
trtcte end fnirteor of the d
rectora sh1l be e1octd from i g t'
ihrs In such
o
1iv led LntD
distrLt.
j
?rLor to
tus
'j
tPx1 tuy i
i ti
i:t11
1
ii
the oran-
,
19
iL;
itO
j
.L..L ..
ict3 for
ci
t
ratts f
Lctin
iI.i
UOC I
t1
ai1.L
tin
the
tibcrot
ba
r
ndari
uc
Secetiry ot
fh
prc ib fr dtztrtt el t.:rs In
>r
r t
, 19
rr-
ti.s tr: t)rs hI
1tr!ct. oh
tor
ap
iep
rid n
a
oci.tr.
ii
i mL.d
;oh
R.fl
wor
nri
.
ii 3U
J
C
at ti
re with
ni1i.
f
arkets
:n;L1 t.0
qai I
C
nfl
ft
J.i ech
etat1ozi
tr.td
ri1i
ro t)3 rp)ortor.i
coe 1bn or Jjpyt1
:;ct.ors tn ofI.e0
1; Onm3rt
hmd1d b!
Jn
kL
LL
ncI
1; :e n-ibEr or ci L
n the
t
tL1pis
;t
,f
ibr nd
f
v,te of t?a
iitrtottng i:id r)tor..
.;3
U.)Q
tha signLp cf product3
iSOC1 i Lon.
fln t,
b.t t 1ast t
veeks p.tor to ths iirst
of tie
trt olectton
a
p_
r;r
their
i:
;)fl
Ct
:t t;.:n 'ir
;J:l
JJc: 1
fl
U$
;),8);i ;: c; a1i!
Li
.1 is:ri. t
:id
an..
t)
.
.i
b;r
,
)
vot
n
p;oxy.
t.i..)n 3.
n the
ir-'i3
rd of
Croc-
.;
c
cnc
tii
Q
3tc
cI
I
JS'jCjt
xt nczumi
rni.b
Lit.i'
)r
T
rr
not-Ifj t;t
or
ii f:i
tty
c(ttc1
t}'
lo';t.ori.
')iitC:..,
(
4
Q
1 td
.Lr
then file wIth
h
hriI
d tiki uch ;tion
r-)
t 1t nxt
tc
Lr
().flJI
uz
zthc.i1 1ririedit
LO t
C'j
cretr;
scr -t
t
irist the
th
ttp
17
to b for
Ch
Of
of +!
;::
!
t ior
t
pri
:'
O) t
'
.LC)fl
o
:nt,
.1
th3
r'ct u',
ti
:)t
th
:JvL
LLt ;vi
F
'C1Jt or the
1
toti
'E
i*ic
',i
th
or
Oi
r
flr?z
i;.11
VflC7.
d !o t "
t fl O:nIr
);P
or
ti
V Lo
)C1. or
't'iC)
pr
in n
rd
s
soon
On thE
.)flJf of
n(wl
ri,
1
2nd
cy
4;cd itr &ui1 FO1C
rt
eetth
and
orntze
r the
electic;n of a pr 1cent a VI
L4L
'.-
Id
atlon,
!3S 30
iditn to the
f the
}t cch t'
4 £r
iord of
::j
qnd p1ae a the
'.
oti
A
rezL.z
of TOgiar
tors.
of
r1
t
hL3 I
at
f
i
th
pociat :eting ot
nvr
rd of Dl otora sht I b
i
the ?rodon o1
a
of tho
)
j':t
z
ii 1'or
çiod )j' tO P4'3O1i
ar-i. iiivrad to
and p1ce of
,i
23oia1
oh
11,d by
rotr9
vr; bo trrc ';.)d it
i:
ioeti..r.
peo taT :leo
o
writ1:r;
o
IC,
t'otarr, uric
;o
t;
tirie
e
Ti
of
ai ee t1i
tthg of tho ftre'tor ha1i bø raitiod to
119
oo.h DIretor at his 1s
() dpn
or to th
nOWn n1rs
e'n (7)
t
no
noru rf
t1tn te
tj'1c,
f - Ye
torih.11 con
iertor4 S'
re f:r SV1cOS t dIrectors
ptip ton
eot for roU' ro'd ra aoi1y xperidec3 by the. In ntt
to eotrgs of t,he ord of
io
Other th-r
nr otr n ssri trvo1
DIrtars,
nnd
per
dv nozary
.)U rr ::r ror
of
for trrv1ng to tr
fro!r
Powor of
The Dirtors hi1
I. To c diot
nd for Rttornce
iv
tre-tD"E
ve tho pwr:
n.ri cmt.ro1 th
ts of th
flcrs
guiations fr
or
t ottnz
ff
s
.nd oao
nd
ent
fThir
acnt nc
t
?t
rt:z t.tr 00 er!t
!..otI.
fo
ii
rftcors
ormrbe thotr
0
, soo'ttv f' ft1':
3.
s
Li
00
bor
t 001
jn
sny te port th written reauest of ter øir ornt of the
ecr1 tt
'T
in'
3.20
he
I
-
u
t ;-tor
.
all it
nci;
and
T:Cflt F
t.ettn.a ,f tht
r
2.
tin
$uLrvj, li Oi1ca
soe that tis r dutts are prooer y porfoied,
12?
Jo require of every offcer or
Aocttion hnd1
fr
p1OyOe of the
iiretf bond Ln such nnount
arid in such terms as tre 3o.. r mar jr ir jr for of
the Jssociatjon.
ch bonds siatl oc oaid for oy the
A saociation,
Li-.
of
fo cause to be isi.ued. approortate certtflcates
noership.
.
To intl1 ucn a
st.;:. of bookkeepIng and
audtin thst en&i e'or xay hnow nnd be advised ft
ti ie to ti:ti :Ii1y eoncerring he recaipts and a'sbursoments of the Asocieton.
The officers of the Asoiation
i1 be a President,
a ice-Presideiit, a Secretary, wiio ha1t also ect s
JrePsuror, and a MRz1ger, tootuer wit. any other admtn
i3trative offjctrs v:.ji j1 ord of Directors o;
fit in its disoret.on to provt.e for by resoiuti.oa
n-
tered upon its inutes,
The Board iiay appo:th.t
.tnt searetr1es, in its
discretion, and nay dLaate to them any or all of the
duties of the Secretarr hercun;thr or any other dutIes.
The coipensation and tenure of all officers shall
be fixed by the .otrd of Direcboxn.
'i..'he secretary need not be a meriiber of the board.
I2
ti
t')
Iir3
Q
rrr're
t
1l pOePS
r'
123
3.
To keep a proper iienbership book,
name of each iir ci
howtrL;r. the
c Asocitiou, tii8 nLer of hl.s
:.i'ee, surrander,
membership certiiicto, find date ci
cancellation, forre Lti, or trrtsfer.
ii..
To receive arid deposit all funds of the Peso-
elation to be p&ici out orLl'c on eo1. drawn as herein
before provided Rnd account or ll receipts, cIb;;
ments and bilr.uccs on hnd.
, To exeue Pnd sLgn i1
itiac, notes, pape
and documents as Secretiry only and to control only
financial accoLnts as neaeurer.
To discb.r;;e ouch othnn dutios as portain to
6
his office or nay be
b
tiio
..ii:d of )iroctors.
1. TiCJE IX
it .cc
The ioard of Dtreotu' iay a;)coint an Lxcutive
Committee cons:Lotin of five Dir tOrso to '
affairs of xe oocia iior, nod he 3oaid of Dtrector
)V.
may deternine t1t tuure of offi.e of said xctive
Cornnittte,, its oower, dut.tes and C)W.3tifl of its
members.
The Prssj'ient of thc Aeoi.:tion shall con-
Any three
stitute one member of snch xeoutive
membr of such Executive Committee shall constitute a
quorum for the trneetion of bw..tn:s,
The Eeeutive )r ttee sbell have such duties and
powers as may fron tioie to time be prescribed by the
L-L
:f t
LiLr ;
5$
potnt rn Andtti.. ng
C,rittee
fPo-1 a
':!.
Tr1t7e
tbe r'mbr
rd
()
prertoe rules and r':lt
rirmner
the
nd torn
i.
4th reCerer,e to
In ltu
such atn b t
niittv ir rre rrtbe t.r*'
te t
t
&-11 be !rt(.d
condtttn o1 the
'th awjlt, shall be
ri
r1fied
;he
ented t[y?iflt
udttthg the sie, and
oc!ation nd t c rrrter
.'
ii
y
''Mrd, the
c.itnc orw
nnd -ezu1t,1ons wtth reroed.ire. n tr.rtc4 nudit
UD1iC a
otflt, P.fl1 the
oc.rt.on s
by
'ted to the e crs at the annual
o
the
:cr- tte
LQc1 .ivtri:"
Board
T;trcetor
pcfr
tth funct
he
siL1 h'e
21Ci
D1rertor
hr
ptv tee and
rir diten
l2
P
fT
'apera
z:t5on iiRU o
tir-
olznt
otJtoo 3oal1 bo kpt rt the
book
prrip1 pi3e of bu
)O.tiOfl
nct
t11
of
boo :
irtors r.ii
cr
the
'c t.
L
of
YLbor or
s
t & 1. t:s durn
to t)t 1.!. pc
'preeentL1
of t:h
o.Rnizd for the pu
.f 'tl
atck, ind for the purooc ot
n4 pi'Of.d
rui
Ru
)t:.r
n1p, '1 thout t.ti ti
boi:s oriLr
11
CL
Of
t;ion.
The
.1
!o
witiin Ite power
ver
t
ut
able vrt
].g1'33t
Lrri'c)rm
UnOfl
prSor hic
iOflS
ri
'o.1s CorpOrRtifl
ftctiittes
of
1i
iei
p.
jrof1t Crpor...-mn.
ot
)
Ok11L
Tiy uthl?
'
Gnira1. .rovt iis
buLs.
D3
.u10
;y
Aoetatto,i ir1i triv
the public gerei
th*
reslt from
th6 :airt'mmiz.t
ir, ri -;'
ton t.reof;
)eirO
Pr'i .L ts
re t"i
.-id th
rovr
io.vies
ri-.
tt
nd
mioh
n
I2
dttrbitto
of
:n
)__(
by
r
as
rcNort tei
".
uttr
f
c r'
or
*'L
>P
r
ir
'
or
-'-
ic
'0)
rrmc
of
. tl.on.
nv o'br
f
f
torn
Zfld
I.w
a
f th*
1.1
t .t r
E(t"z1 by
b
:i
nv
r
r3rov'!d
t
t rh'
!
127
pits
.io pr:nt
ifltr3St 1
c)L
I
1.
irii. b
t::
t
2CT1,
snII 0) r'r)3 r31
t) tie i ;
.)j
131r I)C.
Assocttt?r iLr
4riiL
ereg
LIT:
iOL
tLV
4"
Qt
1eT
2?
the
vt
oi vot.
b
.:rtr
bn11
nfl
LJ.
o'
cL I
dJ ai'
L.r1 t
126
and the remrinder !flflV be used for organ1at1On purposes or sucb pwposes o the Focrd of Directors
mambershth fe
&o it a.Uviaable,
vtdo that the o1 of Dtre'tora
by a twothirds vote nay change the ent.ranoe fee for new
members who become such at teroh change takes place.
It such fees are not atually paid heri ue, they
shall be char'ad agatnt the co.int of the ienber end
deducted 1ron is net returns uer the standard marketing
e;reements and thse by-laws.
(r) Property tghts and Intorests. Tht proprty
rihta and interests of each
bor in the property of
the Aisootatton shall be aqu. 1.
(g) The /aoctatton, by stion of the oard of
Dir3ctor, shalLi have the L1l right to puroheae the full.
tnterot of any '.ber in the propert7 or other rights of
the Association, at the book value thereof, whenever in
the judgment of the ai4 oerd it is in the general
interest of the Association so to do, nd the state nt
of the book vslte th:reof by the Boa rn of )tretora shall
be conclusive. Any raember whose rtghts are so purchased
shall cease to be a nernbtir of the aaoctatton md his
membtrshtp crtifioeto mhsll thereupon be cancelled.
(ii)
iemborahip
orttficatea.
Tb
is Asoctation shall
erttficatc at'
ortibershtp to each mbor in such
forn s may be provtded by the Directors but such meibar-
ship shall not, nor shall said certU'Icate thereof, b
j29
Rasigned by said member to any other person, nor shall
any pUrchaser st execution sale or any other person who
iay suceed by o:oeratton of law or otherwise to the
Dr000rty thterets of a nember, be entttied to meibership
or beone a member of the Association by virtue of such
transfer. The Board of Directors of the saoctatton may,
however, consent to any assignment and transfer and the
acceptance of the estjnee or transferee as a member of
the A3soQtStion. The board will establish reasonable
rules and regulations authorizing the
ceptance of a
transferae and recogr. Izing as riembcr the purchaser of
9 !Y1e'flbe1'3 sheep or goats, who acquires such member's
menberahtp oortftaate after signing a marketing agree
mmt, and deternLne the conditions under which the ex
ecutor or 1rmiinistrtor of d eeei member, and the
roqireznena for the iisuance and trsnsfer of an appropriate me-ibership certificate to the sucoesaor or suc
oessors in thterest of such member's sheep or goats and
likewise the conditions for the transfer of rights snd
certIficates to pirchaser at execution sale and any
successors by operation of law.
(I) Pools. Th 3ord of Directors of the Asaoct
atton shall conclusIvely etsrmthe the pools ty which
the wool and mohaIr of the PtsocIetton shall be marketed,
provided that such pools 8hli be based upon dIfferences
130
th var'tuttea, qwl: tioi, r1ies nd dletrtcts.
All returns tt the i'bra of tita Asoointjon shall
be. based on ths fbi
roc1 from each of the sid p.ole,
1&59 all
pi ovtd.d In the irettn agroenonts of
the
soc1rtthn, IoindIng n th wle 3f the produbte
deUvered by tho'i to the ,ostio ror eh of the eti
pools, smh velue to oe d
triod by the re-sale prices,
less d.
as provtdd ri th 8tancird ret1ng
(j) .Exnse of tntninthg (r tzF1t.On. All ex
pnses of rnaintetnn the scttIon, includIng ano
other things, the ourchese .f neossary sq)oli3 Fnd
eqtnertt, rent.,
lnri,
thsurance, office and
thapection exenaes, vertIstn;
for betterments,
expertients, org9nIz'tt)n .nd t Itke, shall be met
.
froii rnenberahto end
ntrne Thu, md tSt oharas pro-
vided in the atarithrd nai't ug
rerts.
Iny sarplua funds over and nbov th
tw1
itures, res4rvea nd ohltgattors of the Association,
shell be oonoluetre1y peud o b
tn
tout of the Psoojptton de U tI.'na referred to in the
standard mrket3np rement;
ny ich surplus f.us
nay, in the dt.seretton of the 3oard of Diretors .t any
i.
r%d
tiMe, oo divided a'nong the miribers,
the basl.s of the
value of the products delvered by them undor the saId
ot
market Lng agreerients as a. return of portion of the said
Associatton deductions, or any euch. surplus may be used
a.
all within the dIscretion of the Directors, for any geri
eral corporate puroose of siventne to the issooistion;
provided that such surplus shall not be decried to belong
finally to the Association as dtsttnuished from its
nembore.
(k). Provision for LIquidated Damages. 1aoh member
must agree to market the products produced or acquired
by or f or him in accordance th the provisions of the
standard mrrketthg ngreomonts referred to in Article XIII
hereof, and each member shall therein admit thet it would
be extremely dtl'ficult nd impracticable to fix the
ssociation or its e'nber's
would suffer if he should neglect, refuse, or fall to
keep or perton the terms, conditions and ngreents here
In, and in his marketing arement contained as to such
amount or damages v.hich the
marketthg; and therefore, it Is expressly understood and
agreed by nd beteon each ot the merniors of the Association, including any persons bereaftr beoomng nrnriberi
and acknowledging notice nd acceptance of those by-laws,
that if ho shall refuse, neglect or tail to market his
products through the facilitics and in the :ianner provIded by the Association and in accordance with the texne
of the agreement, such nember shall pay to the Association
132
3 ii4U1thtd
ion deind of th Aseot8tion,
th3 suri8 set forth Ln th
t
ereeiont.
TtL XtV
The }3oard of :.ix'etors
retUr, Rppoiflt
1 itE
vr wo ha11 hold 1'fic t the t,1r of n on
ters nid ooLditn3 iet y t ioar of Direotore. The
Ms;.nr shall prfor such duttes a
the
:y e diretod
oard of Directors.
p
.
Borro
_j
ig !onoy
n rb1 have the poor, br tTtrninttve
vote of at It nn C?) dtror8, t borrow :my Qr
to authorize the I'xcutive Oooittø or the
borrow
one:r for
ny corpo'nto
Th
inar to
Ofl
or ;Aporl rny atets of th i soottin ot' n iny property
of io or's in
po
s'.or or u.o,n &ny
ount there-
Of or ny propexty not yt diatrL zted to tho '-bsrs tn
SUU LGflt n:j ApOfl. OC t)i'l3 and 0fldtttOnS s 'nay
trii tI e to t1:
s
to the 3ard ol' i1'trectors advisable
or fl es.'rT, provided howv.
that the organizing
tiirectoxs y brnow ny or' uthox'.z the xcutive
Conuiitttoe or the n:or to borrow ney xpon the afftr,n-
stt'e 'Vote of 5Vfl
G
au.h orrtn board.
1. 3
$
A
P.1
Any officer or sto'kholder or manager or rneTibor of
any corporation or ftxi wich has slgnd the marketing
agreement of the Association and has become n n3mber
thereof, shall be eligible ei a Director of the Psocistion; arid for this purpose a mebership certificate
may oe issued in the nao of any such individual or be
charged against or credited to the accunt of the corporation or firm of which he is an officer, stockholder,
man 'er or member, unon the written request of such
corporation or firm.
hsrL any such individual ceases to be & Direotor of
the Aocition suer memoerahtp oz'tificate or all of
the rights and interests represented thereby, shall be
transferred
ifl to the said corporation or rirm represented by 8u3h person.
A1V"T.'
Aindints
00 altared or
uded t any annu
meeting of the niombers or at any other ieettng of the
members called for that puriose by the Directors, by a
vote rspresenttn a majority of all the members.
Thea
by-laws
iR
1314.
Se(,retary
3tgned
I3etng
t
this
11 at the emberB of the
d9y Of'
ott1on.