producer has much to lose and only a temporary advantage to gain should he, when working coöperatively, artificially force prices upward. The future welfare of the industry depends upon increasing consumption. Abnormally high prices diminish consumption, and the temporary profits due to abnormally high prices stimulate overproduction, both of which effects seriously react against the producer. Experience shows that coöperative selling on the part of producers has in no instance put any unfair burden on the consumer."

Considering that coöperative marketing is on trial in California, the Director gives these benefits which come to the consumer through this form of marketing:

Coöperative marketing stands for standardizing qualities, so that only products fit to eat are allowed to go to market.

Coöperative marketing stands for intelligent and more economic production, so that the cost of production is lessened.

Coöperative marketing stands for better packing so that products reach the consumer in better condition.

Collective marketing plans for collective buying of all things needed in production and in preparing products for market, thus again lessening costs.

Coöperative marketing stands for eliminating wastes in the cost of distribution.

Coöperative marketing spells the death-knell of speculation in food products, thus stabilizing prices.

Coöperative marketing means making national advertising possible, such as has been done by the Citrus Growers Association and the California Associated Raisin Company, which have enormously increased the consumption throughout the country for these California products, thus greatly adding to the prosperity of California and to its people.

The consumer must inevitably fall heir to his fullest share of all these savings, benefits, and advantages, as has been demonstrated in the California citrus industry, the raisin industry, the peach industry, the almond industry, the walnut industry, and others, not any of which movements have ever put one cent of unfair burden on the consumer; but, on the contrary, have been the means of furnishing him with products, the best of their kind, at the lowest prices.

Functions of a State Market Director.-The director, after study and experience, decides that the functions of a State Market Commission should include the following duties and functions:

"(a) Gather and disseminate information concerning supply, demand, prevailing prices and commercial movements of farm products, including common and cold storage.

"(b) Promote, assist and encourage the organization and operation of cooperative and other associations and organizations for improving the relations and services among producers, distributors and consumers, of any such products. "(c) Foster and encourage coöperation between producers and distributors of any such products, in the interest of the general public.

"(d) Foster and encourage the standardizing, grading, inspection, labeling, handling, storage and sale of any such products.

(e) Investigate the practices and methods and any transaction of commission merchants and others who receive, solicit, handle on commission or otherwise, any such products, and to protect and conserve the interests of the consignor.

"

(f) Act as a mediator or arbitrator, when invited, in any controversy or issue that may arise between producer and distributor of any such products. (g) Certify, for the protection of owners, buyers or creditors, when so requested, to warehouse receipts for any such products, verifying quantities and qualities thereof, and charge for such service fees sufficient to make the service at least self-supporting.

(h) Issue labels bearing the seal of the State Market Commission for any such products for which State labels have not otherwise been authorized by law, under such rules and regulations as the Director may deem necessary, and charge for such labels such fees as in the judgment of the State Market Director may be proper.

"(i) Act on behalf of the consumers of any such products in conserving and protecting their interests in every practicable way.

(j) Act as advisor for producers and distributors, assisting them in economical and efficient distribution of any such products at fair prices.

(k) Improve, broaden and extend in every practicable way the distribution and sale of any such California products throughout the markets of the world.

"(1) Reduce in every practicable way the expense and cost of marketing said products, that the producer may secure more adequate returns and the consumer a lower cost.

"(m) Promote in the interest of the producer, the distributor and the consumer, economical and efficient distribution and marketing of all or any agricultural, fishery, dairy and farm products produced, grown, raised, caught, manufactured or processed within the State of California."

The first California law was replaced by a new law, creating a "State Market Commission," embodying the principles laid down by Director Weinstock. The same director was continued in charge. In other words, the principles of self help and the collective bargain were endorsed and accepted.

Louisiana. The Louisiana law provides for a Commissioner of Agriculture and Immigration, whose chief function is to foster direct dealing between producer and consumer. He secures lists of producers and their products for sale, and these lists are then published broadcast throughout the State press and also in the form of weekly bulletins, and in this form sent by mail to such persons as request them. Henry D. Wilson, the first appointee, considered the work not simply worth while, but very important.

Michigan.-The Department of Markets in Michigan was organized under a 1915 law, and James N. McBride became the Market Director. The work is under official coöperation with the State Board of Agriculture, and the United States Department of · Agriculture. The work consists largely in investigation and in giving advice. As in California, coöperative marketing is fostered, and particularly the standardization of products and their certification by the State. Price fixing by the Bean Growers associations is one of the concrete problems

which quite early confronted the Director of Markets.

The New York marketing work came into prominence through the vigorous efforts of its first director, John J. Dillon (Fig. 20), to conduct apple auction markets for the farmers. The State Department of Foods and Markets, located in New York City, in charge of Commissioner Dillon, began marketing work in 1915 under a law passed in 1914. This department coöperated with the State Department of Agriculture, the State Agricultural College, the county farm bureaus, the granges

FIG. 20.-John J. Dillon of New York. and coöperative associations, and

the United States Department

of Agriculture. The chief functions were to investigate; to conduct auctions; to study transportation matters and delays; to establish markets, general and local; and to encourage coöperative association work. The direct marketing activities of this Department attracted nation-wide attention. By coöperating with the Fruit Auction Company, a considerable quantity of peaches and apples were sold at auction. Commissioner Dillon considered the auction method to be correct in principle, and entirely feasible and desirable in large market centers.

The New York Department of Foods and Markets pursued a militant course from the start. The New York bakers were forced to restore the five-cent loaf of bread, after raising it to six cents. The price of cold storage eggs was attacked. Jobbers and retailers were required to post signs on "cold storage" eggs. To help the

milk production interests, an auction of dairy cows was held under the supervision of the Department. Farm shippers used the Department in investigating claims against transportation companies. A hay auction in New York City was undertaken but abandoned. Commissioner Dillon conceived the need of his State to be as follows: "The first need of the producers of New York State is to help them to organize into geographical or industrial groups, and then to federate these units into one strong central agency. This agency, by the help of the Department, would catalog the principal crops of the State; know where they are located; know their condition and see that they are properly graded and packed. It would keep advised of the conditions of the markets in the principal cities of the country, and be in a position to direct shipments where the best prices prevail."

New York passed a new law in the year 1918, consolidating the old Departments of Agriculture, Foods and Markets, Weights and Measures, and the Cold Storage Administration of the Health Department into a new Department of Farms and Markets. This new Department in turn was divided into two Divisions, Division of Agriculture and Division of Foods and Markets. Under the Division of Foods and Markets were created seven Bureaus, as follows: Bureau of Markets and Storage; Bureau of Coöperative Associations; Bureau of Food Standardization; Bureau of Food Products; Bureau of Licenses; Bureau of Weights and Measures; Regulative Bureau. Under this law the State of New York is equipped with the most complete administrative machinery in the field of marketing to be found in the United States. Aside from investigation, advice, etc., provided for in all recent market laws, this New York law provides for the establishment of public markets in cities, towns and villages, and for State financial aid to these markets to the extent of fifty per cent of the expense.

North Carolina. This state is very active in its marketing work. This work is done by the Division of Markets and Rural Coöperation, located at the Agricultural Experiment Station, and its Chief is responsible to the Director of the Experiment Station. This marketing work is done in official coöperation with the State Department of Agriculture and the Bureau of Markets of the United States Department of Agriculture. The chief work falls under four heads-publication of weekly lists of farm products for sale; investigations into marketing practices; promoting coöperative organizations, particularly credit unions; and demonstrating proper cotton grading.

Ohio's law, enacted in 1917, creates a Bureau of Markets under the supervision of the State Board of Agriculture. The law is apparently designed to insure cheaper products to the consumer rather than to aid the producer. This law provides for a bureau which shall investigate the cost of production and marketing of Ohio food products, to make rules and regulations for grading, handling, storage and sale of food; to investigate the practice and methods and any specific transactions of commission merchants and others who buy or handle food; to act on behalf of consumers in conserving and protecting their interests in every practicable way against excessive prices; to develop direct dealing between producers and consumers; to encourage consumption of Ohio grown products; to inspect and determine grade and condition of farm products both at receiving and shipping centers; to act as moderator or arbitrator in controversies between farmers and shippers which affect the interest of consumers; and to gather and disseminate information concerning supply and demand, prevailing prices and shipments, including common and cold storage of food products.

Pennsylvania. This State was one of the many states which passed marketing laws in the 1917 sessions of the legislature. The Pennsylvania act creates a Bureau of Markets for agricultural products within the State Department of Agriculture, in charge of a Director of Markets appointed by the Governor upon the recommendation of the Secretary of Agriculture. The law aims to help both producer and consumer at the same time. The Director's duties include the following:

(a) Investigate methods and practices in the production, handling, standardizing, grading, classifying, sorting, weighing, packing, transporting, storing, inspecting and sale of agricultural products.

(b) Gather and disseminate market information to both producers and

consumers.

(c) Publish market price bulletins.

(d) Publish lists of names of producers with produce for sale.

(e) Coöperate with the State College and with the Bureau of Markets of the United States Department of Agriculture.

(f) Promote coöperative associations.

(g) Institute court proceedings to prevent unlawful combinations or agreements in restraint of trade or for fixing prices.

(h) Put into effect state grades and state certification of agricultural products.

In this act we find that the problems of standardization of products and a state label or certificate for the same is very carefully considered.