1270 
riculture, representing over 50 per cent 
of the population of Canada and the 
United States, is the one department of 
production most in need of, and most 
conspicuously lacking, efficient organiza- 
tion along this line. 
Fruit growers have made great prog- 
ress in local organization, but as 
before stated, the local association 
is impotent before the problem of wide- 
spread distribution. It matters not how 
well the local is organized and managed, 
how efficiently it is equipped, or how 
thoroughly co-operative is its construc- 
tion, efficiency of distribution can not 
be attained through independent action 
of a score or more of local associations, 
each striving to overload the same mar- 
kets, each duplicating the other’s ex- 
pense account. Only by centralizing their 
distributive energies can they secure that 
evenness and economy of distribution 
necessary to secure best results. They 
must unite in one central selling agency. 
This is my fourteenth fundamental. 
In advertising, also, the locals may pro- 
fitably co-operate. In 1911 California 
Fruit Growers’ Exchange, a central sell- 
ing agency, spent $50,000 in advertising 
California “Sun-Kist” oranges. Results 
were so satisfactory that they will this 
year devote $100,000 to the same object. 
Could any merely local organization af- 
ford such expenditure? If it would com- 
bine with the other local associations, its 
individual share of such expense might 
not be oppressive. 
In 1911 the same California organ- 
ization, through the subsidiary company 
I have alluded to, was able, by levying 
5 cents a box on fruit sold by it, to es- 
tablish box factories, at a cost of some 
$200,000, and thereby save 6 cents on the 
cost of every box to be used by its mem- 
bers during a term of several years. 
These are two concrete examples of 
what confidence and common sense may 
accomplish, when applied to co-operative 
endeavor through a central agency. 
These facts came to my knowledge dur- 
ing a recent trip to California, and may 
be news to some of you. I might cite 
ENCYCLOPEDIA OF PRACTICAL HORTICULTURE 
other activities of the same organization, 
all on the same scale, and all impossible 
of performance, except through a strong 
central agency. 
Fundamentals Relating Specially to a 
Central Agency 
Assuming that a central selling agency 
is necessary, if fruit growers are to reap 
full benefit from efficient local organiza- 
tion, I wish to mention some vital prin- 
ciples specially relating to the central 
agency. All the fundamentals I have dis- 
cussed apply, for most part, to both local 
and central organizations. There are, 
however, three which apply only to a 
central agency. 
XY. No Capital Stock 
The central exchange should have no 
capital stock. By this I mean only a 
nominal capital. California Fruit Grow- 
ers’ Exchange has, in the last six years, 
sold nearly $70,000,000 worth of citrus 
fruits, kept constantly employed some 
100 high-salaried sales agents, and hand- 
led several million dollars worth of fer- 
tilizers, boxes and other orchard supplies. 
Its capital, all that time has been not to 
exceed $16,000. The local, not the cen- 
tral, organization is where capital is 
needed. Packing houses and _ storage 
houses should be financed locally. Grow- 
ers have the land and the credit to build 
them. Fruit passing through the hands 
of the central exchange can be easily 
made to provide funds for any extraor- 
dinary need of the central. Accumula- 
tion of large capital at headquarters 
would arouse distrust on part of grow- 
ers. It would embarrass the central 
agency in many ways. The latter should 
not be burdened with large financial re- 
sponsibilities. It should be free to de- 
vote its entire energy to distributing, ad- 
vertising and gathering market informa- 
tion. California Fruit Growers’ Ex- 
change does not handle a cent of the 
proceeds of fruit sold by it. The pro- 
ceeds go direct from its sales agents to 
the district associations into which the 
various locals are grouped. Expenses of 
the central are covered by requisition 
made by it to the district associations. 
