SELLING AGENCIES 197 
might be termed a purchasing department. This, in 
many cases, is done by the managing office or under his 
direct supervision. In other instances they have a reg- 
ular purchasing department. This department looks 
after the contracting of all kinds of supplies for the 
producer, such as boxes, packages, spraying materials, 
fertilizers and chemicals of various kinds. In one or 
two instances such a department is a subsidiary organiza- 
tion of the regular exchange. It is sometimes a stock 
company, the stock being owned largely by the members 
of the exchange. In such cases it would be run inde- 
pendently of the general management. These depart- 
ments are highly desirable because, by contracting far 
enough ahead to meet the needs of the growers, consider- 
able money can be saved by buying in large quantities. 
On the other hand, the producer can always buy his 
supplies through the exchange, thereby insuring the 
correct packages or other farm supplies. He can usually 
get them at a cost much less than if he had to contract 
or buy them at wholesale. One Western exchange has a 
subsidiary organization for the purchasing department. 
This is a stock company and pays dividends to the stock- 
holders. Their aggregate business per year averages 
about $2,000,000. 
Details of Exchange Management.—In the larger or- 
ganizations each local exchange is provided with a ware- 
house. In all of these local exchanges that have their own 
warehouses the fruit is brought in by each grower and is 
there graded and stored. In some eases the fruit is 
packed in the producers packing-house and no central 
one is maintained. In these cases, however, the packing 
is done by men under the direction and instruction of 
