SOUTHi;jlN ('AMFOKXIA CITRUS EXCHANGES, 515 



of years, oi* make the growers stockholders of a corporation, and are governed 

 by its by-laws. 



<' I think it sufficient to say that very little work is done to induce growers 

 to connect themselves with the Exchange. Our business is on a sound and 

 legitimate basis, and unless the grower sees it to his advantage to join it, it is 

 quite as well for the movement, perhaps, that he remain out. If he comes in 

 voluntarily, it is because he has confidence in the system, and if he were not 

 convinced that the system was advantageous he would probably be more or less 

 of a disturbing element if he came in. 



"The Southern California Fruit Exchange acts purely and solely as a mar- 

 keting agent for the various local Exchanges, of which there are twelve. The 

 local Exchanges and Associations connected with it determine all the questions 

 of grading, packing, etc., and we have to do with the goods when they are put 

 on board the cars ready to go forward. 



"We have what we believe to be the most thorough organization and 

 system that has ever been organized for the handling of perishable products. 

 We have our own salaried agents in the principal cities of the United States 

 whose sole business is to sell our goods. 



" In Chicago we have a general agent, into whose office all the agents report 

 regarding the market conditions in their districts every day, and this office in 

 Chicago, acting as a Clearing House, gives back to the difi'erent agents the con- 

 ditions in all other markets. By this system all of our agents are kept thoroughly 

 advised of the markets in all other portions of the United States, and the agents 

 are therefore afforded the best possible weapons for use, and the best possible 

 argument to enable them to bring their markets up to the average. This system 

 enables us also to gauge the requirements of the different markets and distribute 

 the fruit according to the wants of the different places. 



"Of course this can not be so thorough and effective as if we controlled 

 eighty or ninety per cent of the crop. 



"Perhaps the best proof that we have thoroughly organized and systema- 

 tized our business is the fact that during the season of 189G-7 we sold one 

 million six hundred thousand dollars worth of citrus fruits, and sustained a 

 total loss of two hundred and twenty dollars from bad accounts. During the 

 season of 1897-8 our sales exceeded three millions of dollars, and our loss from 

 bad accounts amounted to six hundred dollars. So far this season we have sold 

 over two thousand car-loads, the aggregate amount I am not able to state, and 

 thus far this season we have not suffered any loss from bad accounts. 



" This record I believe to be unparalleled. I feel absolutely safe in stating 

 that we get more money for our fruit than is obtained through any other chan- 

 nels for any large amount of like grades and qualities. Our system gives us the 

 advantage of a rise in the market afterdate of shipment, as we sell delivered 

 instead of free on board cars. This season the markets have been almost 

 steadily advancing from the middle of January to the middle of April, and we 

 have had large benefits from selling delivered, as against free on board 

 sales. It is well known, that if the markets decline, the so-called free on board 

 sales are ' rejected ' anyway, so that by our system we do not stand to lose, but 

 have always an opportunity to gain on a rising market. 



