STATE AGRICULTURAL SOCIETY. 17 



$11,000. As the organization is preeminently a cooperative one, this sur- 

 plus, instead of swelling the bank account of any corporation or private 

 individual, is returned to the members themselves, after 6 per cent is 

 declared on the stock and 2 per cent reserve is set aside; the residue is 

 divided among those who have shipped with them, in proportion to the 

 amount so shipped by each one. This will amount to a trifle over 1 per 

 cent on the gross sales this season, or will be in reality a return of 1 per 

 cent of the amount of commission charged for handling the product. 



In the amount given above for expenses, is included salaries, traveling 

 expenses of their eastern manager, who makes Chicago headquarters dur- 

 ing the summer, and has general supervision of all agents, advertising, 

 and business of the Union. The telephone &nd telegraphing of this 

 organization amounts to about $3,000 per annum, not a cent of which is 

 charged to members. 



The Union charged last season a uniform 10 per cent for handling the 

 fruit; of this the agents received 7-i per cent (out of which is paid auction- 

 eer 2^ per cent at points when auction method of selling is pursued), and 

 the remaining 2^ per cent was returned by the agents to the proper officers 

 of the Union. 



Had those who shipped through the Union sent their fruit east on their 

 .own account, they would have necessarily paid 10 per cent, just the same, 

 and would in addition have been compelled to pay their own telegraphing, 

 which item often runs $10 to the car. 



It is the intent of the Union in handling the great fruit output of the 

 State to charge a lower commission for the coming year; how low, they 

 are unable to say, but in all probability not to exceed 8 per cent. 



The establishing of the auction method of selling our green and perish- 

 able products is one of the very best plans yet inaugurated. This plan 

 will lessen the charges and quicken the returns of all fruit handled. This 

 is the principal method used in selling our products in Chicago, which is 

 the chief market so far, although the prospects are good for both New 

 York and Boston, which, with London for our dried and canned fruits, 

 will soon overcome the cry of over production. It is only two years since 

 we made any attempt of selling our fruits at auction in New York and 

 Boston, and the result far exceeded the expectations of the many. 



Chicago receives about one half of our fruit product, and this plan of 

 sale enables the buyers from all places adjacent to receive their fresh sup- 

 ply of California fruit without the intervention of the middle man, who 

 profits to the injury of the producer, as by the time, under the old system, 

 our fruit reached the consumer, the price asked was almost prohibitory, 

 so much so that but a small proportion of the people were able to avail 

 themselves of this commodity, thereby lessening the demand to the detri- 

 ment of the producer. Now, the producer, through the Union, may sell 

 almost direct to the consumer, and be interested in all the profits that 

 accrue. 



Our early peaches, apricots, and grapes never sold better than under 

 this system, nor did they arrive at consumers' hands in such good con- 

 dition. This last season much of the table grape crop was so badly 

 injured before picking, by the excessive heat of July and August, as to 

 render it unfit for shipment. But for this unusual heated term we would 

 have made greater shipments than any previous year. As it was our 

 grapes carried in poorer condition than for years past, and of course sold 

 correspondingly low, and so will bring down the average net for all fruits 

 very materially. 

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