208 MODERN FRUIT MARKETING 
draft. After being paid to the bank it became a re- 
ceipted bill upon presentation of which the railroad 
would deliver the shipment. In this way there was no 
credit extended and the exchange did not have to wait for 
its money. This method also prevented unscrupulous busi- 
ness men from beating the exchanges out of their money. 
In 1914 this exchange did over $450,000 worth of 
business, and during that period lost less than $23 on 
uncollectable accounts. In the last annual report from 
another exchange, the organization did a year’s business 
of $29,434,402.40. Out of this sum it sustained a loss 
totaling $355 in bad or uncollectable accounts, making a 
total of .524% loss in bad debts. This method of fill- 
ing orders by means of a sight draft attached to the bill 
of lading accounts largely for the very small per cent 
in losses. This same method is used also by other ex- 
changes. 
It is only possible to do business in this way when the 
exchange is able to stand behind any price it may set or 
guarantee any pack it may undertake to sell. When any 
buyer gets a package of fruit, knowing that if it is not 
up to standard he may return it and get his money back, 
he is perfectly willing to invest without first examining 
the contents of the package. No consumer in any town 
or city would think of trading for a moment with a 
grocery store which would not take back goods which 
were not satisfactory or not up to expectation. Hence, 
it is only reasonable to say that fruit growers must ex- 
pect the same conditions if they want to demand the 
highest price and the respect of the consuming public. 
It is needless to say that this is one of the hardest prob- 
lems which exchanges have to contend with and one 
