PROCEEDINGS OF THIRTY-THIRD FRUIT-GROWERS f CONVENTION. 113 



goes into a common pool and takes its percentage of the returns accord- 

 ing to the grade. Any given brand is the exclusive property of the 

 association using it, and the fruit under this brand is always packed 

 in the same locality, and therefore is of uniform quality. This is of 

 great advantage in marketing, as the trade soon learns that the pack 

 is reliable. 



There are now eighty-six of these organizations of growers operating 

 through the Exchange, covering every citrus fruit district in California 

 and packing over two hundred reliable brands of oranges and lemons. 



The District Exchanges are composed generally of several associa- 

 tions of growers operating in localities near each other, or in one locality, 

 and the matter of shipping and marketing is controlled by the District 

 Exchange, upon consultation with the associations and, through the 

 associations, with the growers themselves. 



The California Fruit-Growers' Exchange, or the general or central 

 body, consists of one stockholder and director each, selected by the 

 various local exchanges. The governing power of the central organiza- 

 tion thus remains in the hands of the district exchanges. Thus from 

 top to bottom the organization is planned and controlled absolutely by 

 the fruit-growers and in the interest of all members. No corporation 

 or individual, except the growers themselves, receives either dividends 

 or private gain from the Exchange operations. The duties of the 

 Central Exchange are found largely in the placing of the fruit in the 

 various consuming markets. 



While the Exchange has, through its operations in California, freed 

 itself from speculative trading by taking its business out of the hands 

 of the middlemen here, it has never opened retail or jobbing houses in 

 the consuming markets, but has and does put the fruit in the hands of 

 legitimate dealers for distribution, and to do this has established exclu- 

 sive agencies in all the Eastern cities of the country, employing in these 

 agencies active and capable men of experience in the fruit business, 

 for the most part on a salary and having no further business of any kind 

 to engage their attention. None of these Exchange representatives are 

 permitted to handle any other than Exchange citrus fruits. These 

 agents sell to smaller cities adjoining their headquarters, and over all 

 are two general or traveling agents, with authority to supervise and 

 check up its various offices, the headquarters of these two general 

 agents being Chicago and Omaha respectively, where complete informa- 

 tion is kept of all the business transactions of the Exchange in all 

 markets. This information is gathered from day to day and distributed 

 by these general agents among all markets, thus making it impossible 

 for a customer to take advantage of any Exchange representative in any 

 market, and, knowing the consumptive needs, and the price being 



8— FGC 



