176 MODERN FRUIT MARKETING 



but pay running expenses by levying a tax upon each 

 package sold. The idea is simply to deduct enough from 

 the sales of each package to run the business. Most of 

 the money for operating exchanges of this kind is pro- 

 vided by deducting from the sales a flat tax, based on 

 the number of packages handled. 



For example, the California Fruit Exchange charges a 

 tax of 5 cents a box on all oranges and lemons sold. 

 Another set of growers charges a flat tax of 1 cent a pound 

 on all almonds handled. Still another exchange levies 

 i/4 cent a pound on all prunes, raisins, etc. This 

 amount, in all cases, has been found sufficient to carry 

 on the business of the exchanges and still have a work- 

 ing surplus to carry them through into the next season. 

 When this surplus reaches a certain amount it is then 

 returned back pro rata to the members of the exchange. 



The people who promoted these exchanges first se- 

 cured the backing of three or four extensive growers 

 in their neighborhood who were willing to advance 

 $500 to $1,000 to get the organization under way. 

 Then the exchanges are effected in the following way: 

 Promoters will visit the orchardists of each section, ex- 

 plain the plan to them, show them in what ways the 

 profits are returned and that there is no money to be 

 put up until there is something to be sold. On the 

 other hand, they are asked to sign an agreement whereby 

 they will not sell any fruit except through the exchange. 

 This ties up their fruit and does not give them permis- 

 sion to sell in any other way. 



In this way large quantities of fruit have been secured 

 to sell through the organization almost before the growers 

 were aware that anything particular was under foot. 



