, AFFILIATED ORGANIZATIONS 191 



the Supply Company determined to put itself in an inde- 

 pendent position. It bought a considerable tract of timber 

 land in northern California and erected a lumber mill 

 capable of supplying about half of the packing box needs 

 of the exchange members. With this means of protecting 

 itself the Supply Company is in a most strategic position 

 for bargaining with shook manufacturers. 



Thus far the policy of the Supply Company has been to 

 buy most of its shooks from the regular dealers and only 

 operate its own plant enough to know that in case of emer- 

 gency ever)rthing is in readiness to afford prompt and ade- 

 quate relief. Under these conditions box manufacturers 

 can charge only what the Supply Company regards as a 

 reasonable price for shooks, else it will increase its plant 

 and care for its needs without reference to the regular 

 dealers. Since there can be but one market price for 

 shooks, the benefits from this action on the part of the 

 Supply Company accrue to all citrus fruit packers as well 

 as exchange members. 



Besides packing boxes the Supply Company furnishes 

 its members with other necessary packing materials, such 

 as nails, labels, tissue wraps, strapping, curtains, etc. These 

 things it buys from the trade at much more favorable dis- 

 counts than individual packing houses could get. 



Packing house materials represent only one side of the 

 Supply Company's activities: the other is devoted to ob- 

 taining orchard materials for the members of the associa- 

 tions. Growers buy each year large quantities of fertilizers, 

 seed for cover crops, frost protection devices and fumiga- 

 tion supplies, such as sodium cyanide and sulphuric acid. 

 All of these things are obtained through the Supply Com- 

 pany at greatly reduced prices. Members of the associa- 

 tions do not deal directly with the Fruit Growers Supply 

 Company but turn in their orders to their local association 



