132 COOPERATIVE MARKETING 



In organization, the central exchange down to 191 6 much 

 resembled that of the district exchanges. It had a paid up 

 capital of only $5,000 and owned no property aside from 

 office fixtures and the "Sunkist" trademark. It was op- 

 erated at cost and never paid any dividends on stock. Its 

 stockholders were all directors, and each director repre- 

 sented some district exchange, just as each director of a 

 district exchange represents some local association. The 

 district exchanges designate whomsoever they desire as 

 their representatives on the board of the California Fruit 

 Growers Exchange; sometimes they choose the manager 

 of the district exchange, sometimes one of the directors. 

 The stock of the central exchange was owned by the dis- 

 trict exchanges and appeared in the name of the men the 

 district exchanges chose as their representatives on the 

 directorate of the California Fruit Growers Exchange. 

 These directors of the central exchange organize their 

 board and elect a general manager. To this general man- 

 ager is entrusted the duty of establishing and supervising 

 an efficient marketing mechanism. He it is more than any 

 other one man who sets the pace for the citrus industry, 

 whose policies make or mar the growers' fortunes. 



It is evident, therefore, that the organization of the ex- 

 change system as a whole is a series of organizations, each 

 kind of organization performing separate functions. The 

 citrus growers unite themselves in packing associations; 

 the packing associations organize and own selling agencies 

 or district exchanges; the district exchanges organize and 

 own the central exchange or California Fruit Growers 

 Exchange, which furnishes the facilities through which the 

 district exchanges operate for the local associations in be- 

 half of the growers. As a whole, the exchange system is 

 strictly democratic. The individual growers elect the board 

 of directors of the local association, this board elects its 



