196 COOPERATIVE MARKETING 



ministration are small. At present the loo member asso- 

 fciations are carrying approximately $1,500,000 worth of 

 insurance. No losses from fire have occurred for two 

 years, and those supervising the insurance features of the 

 exchange system estimate that members save about half 

 of the money which they would have to pay for insurance 

 in' the regular companies.' 



Another affiliated cooperative organization, but one which 

 is as yet ip. the formative stage, is the Exchange By- 

 products Company. In general its organization is similar 

 to that of the Supply Company. Its capital at present is 

 but $100,000, and it has only completed the preliminary 

 arrangements for the erection of a plant at Corona. 

 Though there is nothing that can be said about the achieve- 

 ments of this cooperative enterprise, its prospects are 

 bright. In Italy by-products represent about one-third of 

 the value of citrus exports,* while in the United States the 

 by-product field is almost untouched. 



Citrus by-products are chiefly composed of the essential 

 oils, citric acid and citrate of lime, the bottled juices and 

 the preserved or candied peel. Essential oils are obtained 

 from citrus fruits by peeling them by mechanical devices, 

 crushing the peel and recovering the oil by centrifugal and 

 mechanical processes. These oils are chiefly found on the 

 market in the form of flavoring extracts of orange or lemon 

 and as perfumery. Such oils are worth somewhat over 

 $1 a pound. Citric acid and citrate of lime are obtained 

 by crushing the peeled lemon in order to extract the juice, 

 by subjecting the juice to various heat processes, adding 

 chalk to obtain citrate of lime and dissolving with sulphuric 

 acid in order to get citric acid. About fifty pounds of acid, 



'Letter to the writer from the Cashier of the California Fruit 

 Growers Exchange, dated January 15, 1916. 

 * Citrus Protective League : Bulletin No. 11, p. 40. 



