JVov. 2, 190S.] jigHcuUui^al Gazette of N.S.W, 943 



Upon the formation of the California Fruit Agency, every effort was made to sell the 

 fruit f.o.b. California. All agents were instructed to push this policy, and men were 

 employed as salesmen in the Sales Department of the Agency who possessed ability and 

 much experience in that line, and who have been in the employ of the leading packers,, 

 as their salesmen, for many years. 



Immediatelj' after the California Fruit Agency was organized, April 1, 1903, f.o.b. 

 orders for fruit (usual terms of inspection, etc.) were only received in limited numbers 

 andnot sutticieut tomove a reasonaljle percentage of the crop — although climaticconditions, 

 in California were most favourable to restrict shipments. It soon became necessary, in order 

 to move the crop, to shijj, antl attempt to make sales in transit, or sell the fruit delivered 

 at market value at the point and time of delivery. 



Our crops are now so large that all markets shoidd be constantly supplied with their 

 full quota of fruit in order to consume the output. This distribution can be betttr 

 accomplished liy those most directly interested, — the growers themselves. The citrus 

 fruit-grower is no longer independent of his neighbour as to marketing liis crop, but 

 each one is dependent upon the other, especially in so far as systematic distribution is 

 concerned. 



ThcvSouthern California Fruit Kxchange is composed only of growers, who recognise all 

 legitimate dealers in the trade, and who are organised for the purjxjse of disposing of their 

 products in all markets of the country upon the most advantageous terms, and to secure 

 distribution to the trade at the least expense compatible with the best service, securing 

 to the consumer tlie fruit at reasonable prices, and to the grower the liest average 

 returns. 



When the Southern California Fruit Exchange I'esumes its selling operations on Sep- 

 tember 1st next, in the absence of other instructions from, or a change of policy being in- 

 augurated by the growers themselves, through their representatives on its Board of 

 Directors, the ^^lanagement will endeavour to sell the fruit in such a manner as will bring 

 the most moneii for the prodwt contining itself neither to cash sales in California, f.o.b. 

 sales California (subject to inspection, draft attached to bill of lading), or sales delivered, 

 nor to an}' other one method. Its agents and repi-esentatives will be instructed to secure 

 all orders possible for fruit, allowing the customer to take his preference as to whether 

 he wants these orders to be for spot cash, f.o.b., usual terms, or delivered, suliject of 

 course to the confirmation of the Exchange or Association sliipping. 



Growers or Associations of growers not connected with the Southern California Fruit 

 Exchange have the opportuniiy now to associate, or to form new associations according 

 to tiieir preference and to conditions existing in their localities. 



Believing that in co-operation with each other, the best net results to the growers can 

 be obtained, we appeal to all present Exchange members and others interested in main- 

 taining values of orchard property to put forth every effort to secure as large a member- 

 ship as possible in our assuciations ami exchanges. 



"On March 27, 1905, the California Fruit-Grower.s' Exchange was incor- 

 porated, and on September 1st following succeeded to the business of the 

 Southern California Fruit Exchange. This change in name being deemed 

 advisable in order that the marketing organisation itself might in name, as 

 well as in fact, become general throughout the state I'ather than remain 

 local to Southern California. 



" The Exchange was founded upon the theory that every member was en- 

 titled to furnish his j^ro rata of the fruit for shipment through his associations, 

 and every association to its pro rata of the various mai kets of the country. 

 This theory reduced to practice gives every grower his fair shaie, and the 

 average price of all markets throughout the season. 



"Another cardinal provision of the plan was that all fruit should be marketed 

 on a level basis of actual cost, with all books and accounts open for inspection 

 at the pleasuie of the members. These broad principles of full co-operation 

 constitute the basis of the Exchange movement. 



" The Exchange system is simple, but quite democratic. The local associa- 

 tion consists of a nnmber of growers conti^iuously situated, who unite them- 

 selves for the purpose of preparing their fruit for market on a co-operative 

 basis. They establish their own brands, make such rules as they may agree 



