208 MODERN FRUIT MARKETING 



draft. After being paid to the bank it became a re- 

 ceipted bill upon presentation of which the railroad 

 would deliver the shipment. In this way there was no 

 credit extended and the exchange did not have to wait for 

 its money. This method also prevented unscrupulous busi- 

 ness men from beating the exchanges out of their money. 



In 1914 this exchange did over $450,000 worth of 

 business, and during that period lost less than $23 on 

 uncollectable accounts. In the last annual report from 

 another exchange, the organization did a year 's business 

 of $29,434,402.40. Out of this sum it sustained a loss 

 totaling $355 in bad or uncollectable accounts, making a 

 total of .524% loss in bad debts. This method of fill- 

 ing orders by means of a sight draft attached to the bill 

 of lading accounts largely for the very small per cent 

 in losses. This same method is used also by other ex- 

 changes. 



It is only possible to do business in this way when the 

 exchange is able to stand behind any price it may set or 

 guarantee any pack it may undertake to sell. When any 

 buyer gets a package of fruit, knowing that if it is not 

 up to standard he may return it and get his money back, 

 he is perfectly willing to invest without first examining 

 the contents of the package. No consumer in any town 

 or city would think of trading for a moment with a 

 grocery store which would not take back goods which 

 were not satisfactory or not up to expectation. Hence, 

 it is only reasonable to say that fruit growers must ex- 

 pect the same conditions if they want to demand the 

 highest price and the respect of the consuming public. 

 It is needless to say that this is one of the hardest prob- 

 lems which exchanges have to contend with and one 



