CHAPTER VII 



THE GROWERS' SELLING AGENCY 



When the fruit is loaded on the cars the direct responsi- 

 bility of the local packing association ends, and succeeding 

 operations are controlled by, or at least through,, the dis- 

 trict seUing exchange. It is this second of the three funda- 

 mental branches of the exchange system that now demands 

 attention. Like the local association, it is a corporation 

 which is not organized for the purpose of paying dividends. 

 But while the packing association ordinarily has a consider- 

 able investment in its plant, the district exchange has but 

 a nominal paid up capital and owns no property except 

 its office fixtures. The principal function of the district 

 exchange is to sell the fruit of certain local packing asso- 

 ciations which delegate to it this power. One fundamental 

 fact to be kept in mind is that the district exchange could 

 have no independent existence apart from the associations 

 which constitute its members, but the local associations 

 are entities without reference to the existence or non-exist- 

 ence of district exchanges. Not only is the district ex- 

 change expected to devote its chief attention to selling, but 

 it is required to sell in a specified manner, namely, through 

 the facilities that are furnished by the California Fruit 

 Growers Exchange. 



It is evident that a district fruit exchange is a rather 

 unique organization. It owns neither fruit nor marketing 

 facilities, yet it may handle hundreds of thousands of dollars 

 worth of business during the year. In the form of or- 

 ganization the district exchange much resembles the local 



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