SELLING AGENCIES 197 



might be termed a purchasing department. This, in 

 many cases, is done by the managing office or under his 

 direct supervision. In other instances they have a reg- 

 ular purchasing department. This department looks 

 after the contracting of all kinds of supplies for the 

 producer, such as boxes, packages, spraying materials, 

 fertilizers and chemicals of various kinds. In one or 

 two instances such a department is a subsidiary organiza- 

 tion of the regular exchange. It is sometimes a stock 

 company, the stock being owned largely by the members 

 of the exchange. In such cases it would be run inde- 

 pendently of the general management. These depart- 

 ments are highly desirable because, by contracting far 

 enough ahead to meet the needs of the growers, consider- 

 able money can be saved by buying in large quantities. 

 On the other hand, the producer can always buy his 

 supplies through the exchange, thereby insuring the 

 correct packages or other farm supplies. He can usually 

 get them at a cost much less than if he had to contract 

 or buy them at wholesale. One Western exchange has a 

 subsidiary organization for the purchasing department. 

 This is a stock company and pays dividends to the stock- 

 holders. Their aggregate business per year averages 

 about $2,000,000. 



Details of Exchange Management. In the larger or- 

 ganizations each local exchange is provided with a ware- 

 house. In all of these local exchanges that have their own 

 warehouses the fruit is brought in by each grower and is 

 there graded and stored. In some cases the fruit is 

 packed in the producer* packing-house and no central 

 one is maintained. In these cases, however, the packing 

 is done by men under the direction and instruction of 



