FRUIT STORAGE 117 



it leaves the Jiome town the grower seldom sees it again 

 and must rely upon the word of the storage people as 

 to its condition. Much dissatisfaction and complaint 

 has been heaped upon the storage companies for taking 

 undue liberties with the goods stored by producers. In 

 such cases cooperative organizations, by being able to 

 have an agent at the centers of consumption, can better 

 protect the interests of the producers. 



In the third place, the storage of fruit often causes 

 an extension of credit. This in itself is not a great 

 disadvantage, yet ultimately it cannot but react against 

 the producer. For example, the grower places a large 

 quantity of fruit in storage; he then asks the storage 

 company to advance a certain percent of the value. 

 This the companies are usually willing to do, but in turn 

 charge an interest for the money advanced. 



Cold storage companies are willing to advance about 

 half the sum to which the prospective sales will amount, 

 charging from 6 to 8% interest until such time as the 

 sales can be made. This enables the producer to pay 

 for his help in preparing the fruit for market, to carry 

 on his own business interests and live until the fruit is 

 sold. On the other hand, he is not only paying storage 

 for the keeping of the fruit but is also paying interest 

 on the advance of money which rightly belongs to him. 



While this is considered legitimate business it is al- 

 ways to the disadvantage of the producer in favor of 

 the storage colnpany. Another disadvantage is that the 

 storage companies are often asked to act as salesmen, 

 and this results not infrequently in certain questionable 

 speculations on the part of the storage houses. The 

 manager of a storage house may receive a bid on a part 



