BENEFITS OF COOPERATION 171 



Jobbers and retailers, however, are now handling a much 

 larger volume of citrus fruits, the markets are much more 

 steady, the fruit more reliable, and risks greatly diminished, 

 so it is probable that these distributors are working on 

 narrower margins than formerly. The opinions of those 

 in a position to know are in support of this statement, 

 though they admit little direct proof can be advanced. 

 Hence, even if no usable data for retail prices are obtain- 

 able, we may be reasonably certain that prices to consumers 

 have fallen materially, though by how much it is impossible 

 to say. The exchange system, while trying to reduce dis- 

 tributive costs, is, of course, striving to maintain or in- 

 crease f. o. b. prices, and the fact that f. o. b. prices have 

 been almost constant in the face of the enormous increase 

 in output is the best commentary on the business efficiency 

 of properly organized cooperation. 



The foregoing account of the marked success in market- 

 ing which the citrus growers have achieved through co- 

 operation obviously calls for a description of the marketing 

 services which have made possible this success. The fa- 

 cilities through which the growers sell their own fruit are 

 furnished by the California Fruit Growers Exchange; and 

 we must not lose sight of the distinction between selling 

 fruit and furnishing the machinery through which others 

 sell fruit. To quote from a letter from Mr. Powell : 



The point of view that you should get very clearly in 

 mind is the fact that the California Fruit Growers Ex- 

 change does not buy or sell the fruit of the growers. It 

 merely provides the facilities through which the growers 

 market their own product, but it is not in itself a selling 

 agency.* ii ''^ -i 



The central exchange has absolutely no cars of fruit to 

 sell, but it does put representatives in all of the chief mar- 



2 Letter to the writer, dated November 11, 1912. 



