176 MODERN FRUIT MARKETING 
but pay running expenses by levying a tax upon each 
package sold. The idea is simply to deduct enough from 
the sales of each package to run the business. Most of 
the money for operating exchanges of this kind is pro- 
vided by deducting from the sales a flat tax, based on 
the number of packages handled. 
For example, the California Fruit Exchange charges a 
tax of 5 cents a box on all oranges and lemons sold. 
Another set of growers charges a flat tax of 1 cent a pound 
on all almonds handled. Still another exchange levies 
14 cent a pound on all prunes, raisins, ete. This 
amount, in all cases, has been found sufficient to carry 
on the business of the exchanges and still have a work- 
ing surplus to carry them through into the next season. 
When this surplus reaches a certain amount it is then 
returned back pro rata to the members of the exchange. 
The people who promoted these exchanges first se- 
cured the backing of three or four extensive growers 
in their neighborhood who were willing to advance 
$500 to $1,000 to get the organization under way. 
Then the exchanges are effected in the following way: 
Promoters will visit the orchardists of each section, ex- 
plain the plan to them, show them in what ways the 
profits are returned and that there is no money to be 
put up until there is something to be sold. On the 
other hand, they are asked to sign an agreement whereby 
they will not sell any fruit except through the exchange. 
This ties up their fruit and does not give them permis- 
sion to sell in any other way. 
In this way large quantities of fruit have been secured 
to sell through the organization almost before the growers 
were aware that anything particular was under foot. 
