OUTLETS AND METHODS OF SALE FOR SHIPPERS. 15 



PRIVATE EXCHANGES. 



Private exchanges are stock companies, organized for profit, 

 which distribute shipments, usually in car lots, for either individual 

 growers or producers' organizations. They take charge of the goods 

 ■before they are packed, and sell through salaried representatives or 

 individual brokers in the large markets, subject to the growers' 

 orders. Except that they are operated for profit rather than on a 

 cooperative basis, they resemble very closely the cooperative asso- 

 ciations in their distribution and sales methods. 



These exchanges charge either a straight brokerage or a percentage 

 based upon contract. The charges vary with each transaction, con- 

 sequently no general average can be given. In general, their charges 

 will be found to be about the same as private brokerage charges, 

 with an addition sufficient to cover the cost of any extra services 

 which may be rendered. Large quantities of Northwestern apples, 

 Michigan grapes, and California citrus fruits are handled by these 

 exchanges. 



OPERATORS. 



Operators are large wholesale firms which send private buyers or 

 solicitors into producing sections, and which, through representa- 

 tives or branch houses in several large markets, afford a wide distri- 

 bution for commodities purchased on their own account. Some of 

 the firms which have handled a large part of the Colorado cantaloupe 

 production in recent years may be termed operators. These firms 

 performed the following functions: (1) They have advanced rent, 

 irrigation expenses, crate materials, and other supplies; (2) super- 

 intended the picking, grading, packing, and loading of the crop; (3) 

 made further cash advances at the time of shipment; (4) distributed 

 the crop. 



Operators buy in car lots, and in many cases they will handle the 

 whole "deal" in a particular section, as was done with Colorado and 

 California cantaloupes in the 1914 season. They attend to all of the 

 details of advertising and marketing, and sell the fruit under their 

 own wrappers and labels. The advances made vary with each 

 transaction and depend upon how favorable a contract the grower 

 is able to demand from the representatives of the operators. Canta- 

 loupes in California and Colorado, tomatoes in Florida, and potatoes 

 in Texas are handled, to a large extent, by these organizations. 



The producer who sells to operators is reasonably sure of a market, 

 although he may have to accepl low prices. The low prices some- 

 t imes offered by < he, firm.-, acl ing in this capacity are perhaps justified 

 by the facl that they ;i, ■-.-.nine large risks ami heavy financial burdens, 

 while the growers are. relieved of all speculative worries. 



