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Growers’ Exchange, which now handles 
about 60 per cent of the citrus fruits 
grown in California. There are many 
other associations of growers not con- 
nected with the exchange which are or- 
ganized on the same general principles, 
and these associations, together with the 
exchange and a few large growers who 
market their own fruit, handle about 
85 per cent of the citrus-fruit crop. 
In order that the principles which un- 
derlie the largest co-opelative fruit-mar- 
keting organization in the United States 
may be understood, a brief outline of the 
exchange system follows: 
The California Fruit-Growers’ Hx- 
change represents about 6,000 growers 
who have organized themselves into 100 
or more local associations. The associa- 
tion usually owns its own packing house, 
where the fruit of the members is as- 
sembled, pooled and prepared for market 
under brands adopted for the different 
grades by the association. The associa- 
tion usually picks the fruit of the mem- 
bers. 
The associations in the different re- 
gions combine into one or more district 
exchanges which represent the associa- 
tion in the business operations common 
to each and which sell the fruit in co-oper- 
ation with the California Fruit-Growers’ 
Exchange through the district or local 
agents of the latter or at auction, receiv- 
ing the proceeds therefor through the 
California Fruit-Growers’ Exchange, an 
incorporated agency formed by a repre- 
sentative of each of the sixteen district 
exchanges, which acts as the selling 
agent for these district exchanges. 'The 
California Fruit-Growers’ Exchange takes 
the fruit of the district exchanges after 
it is packed and with their advice places 
it in the different markets, sells it 
through its own exclusive agents to the 
trade or by auction, and collects the pro- 
ceeds and transmits them to the district 
exchanges, which in turn pay the growers 
through the local associations. 
The central exchange, the district ex- 
change, and the association all transact 
business for the grower at actual cost. 
The central exchange through its agents 
ENCYCLOPEDIA OF PRACTICAL HORTICULTURE 
is in daily touch with the markets of 
America, thereby enabling it to distribute 
its fruit intelligently. The local ex- 
changes and the associations receive a 
daily bulletin from the central exchange 
which outlines the condition of all the 
markets the preceding day, states the 
selling price of all exchange cars, and 
gives the growers such information as 
will help them to pack and distribute 
their fruit to the best advantage. 
The limits of this article are too re- 
stricted to permit more than a brief out- 
line of the battle that the citrus-fruit 
growers of California had to wage for 
fifteen years before the co-operative prin- 
ciple was on a firm foundation. At first 
the growers were inexperienced in meet- 
ing the attacks of those who were opposed 
to co-operation among the producers. Pow- 
erful financial interests of various kinds 
were arrayed against them and were or- 
ganized to oppose them. Vicious attacks 
were made on the integrity of the officers. 
The results obtained by the associations 
were belittled, the growers’ association 
contract was assailed in the courts, and 
the methods of marketing the fruit were 
attacked. The most determined efforts 
were made to show that the growers’ or- 
ganizations were illegally formed. Finally 
the growers combined with the buyers at 
one time to market the entire crop, but 
this incongruous combination of pro- 
ducers and dealers was dissolved at the 
end of a year and a half. 
The history of the citrus industry in 
California is largely a record of the prog- 
ress in the co-operative handling and dis- 
tribution of the crop by the producer 
and of his determination to receive an 
equitable share of the value of the labor 
expended in its production. The battle 
has been won; the co-operative principle 
is firmly fixed. It is the balance wheel 
that gives stability to the industry and 
to the relations that exist between it and 
the agencies with which it transacts busi- 
ness. 
Fewer serious efforts are made now to 
break down the co-operative principle 
among the growers. New schemes of 
fruit-marketing are proposed from time 
