Co-operative associations study carefully the law of supply and demand and take steps to adapt their shipments to it. They standardize the grade, the package, and the fruit, and govern their shipments to given markets by the needs and the demands of those markets. Their unity of effort enables them to make great savings in the purchase of supplies, such as packages, spraying material, fertilizers, etc., and in obtaining and distributing frequently knowledge of markets and market conditions. They also advertise their products, making them better known, creating a demand for them, and by means of correspondence or traveling agents seek out the best markets. There are now several large fruit exchanges operating over wide sections of country. But the local associations are the vital units in any co-operative movement. Such associations should be incorporated under State laws so that they can do all sorts of business when necessary. Six simple objects should be kept in mind, namely, (1) to prevent unnecessary competition, and to supervise and control distribution of products; (2) to provide for uniformity in the grade, package, and fruit; (3) to build up a high standard of excellence and to create a demand for it; (4) to economize in buying supplies and selling products; (5) to promote education regarding all phases of the fruit business; and (6) when necessary to act as a buying and selling agent for the community. Such an association requires a board of directors, a treasurer, and an active and well-paid manager. The latter is most important, as upon his honesty, ability, and energy will largely depend the success or failure of the organization. Sometimes where fruit is packed in a central packing house or under an association brand or guarantee, a foreman packer is also necessary. The capitalization required for such an enterprise is not necessarily large, unless warehouses or packing houses are built. These are usually better rented until the organization becomes well established. The shares should be small so that every member may be financially well represented, and members should be prohibited from holding more than a small percentage of the total shares, in order to prevent possible monopoly. Dividends on stock held should only be expected from business done outside the association membership, interest on money invested being obtained in the handling of members' products at cost. Receipts should be given growers for just what they bring in, and they should then be paid according to the grade of fruit which they contribute, prices for the same grade being pooled. The charge to growers for handling should be actual cost, but outsiders' products should be handled at a small profit in order to induce them to come into the association. The same method should be followed in purchasing supplies.