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called by the State Horticultural Society to consider the subject, the 

 organization was temporary and experimental. The plans proposed 

 were widely advertised, and it was understood among its temporary 

 Directors that if the fruit growers, when asked their opinion, should fail 

 to give the enterprise emphatic approval, it would be abandoned; if 

 approved, it would go on under the direction of such persons as the con- 

 vention, so called, might determine. 



This convention, after careful consideration, clause by clause, of the 

 plans outlined by the preliminary organization, unanimously adopted 

 them without change, and formally recognized the California Fruit 

 Exchange as the authorized representative of the Fruit Growers of 

 California. 



My connection with the movement began with the convention of 

 December 29th, where, with ten other gentlemen, but two of whom had 

 been connected with the temporary organization, we took charge of the 

 Exchange as Directors, and proceeded to incorporate under the laws of 

 the State, each chosen Director qualifying by a subscription to a reason- 

 able amount of stock. 



At the first meeting of the Directors, the manager, Mr. Adams, who 

 had undertaken that duty with the understanding that his service was 

 to be only temporary, presented his resignation, which, however, has 

 never been accepted, and having become so familiar with details that 

 he could hardly be spared from the work of organization until some 

 other one as competent had developed, he has continued to act to the 

 present time as the executive and only salaried officer of the Exchange. 



Upon taking office as Directors we found our total resources to be a 

 stock subscription of about $1,600, upon which 25 per cent was expected 

 to be paid, and of which a trifling sum had been paid, and the pro- 

 ceeds of a collection for expenses taken at the convention, to offset 

 which were the preliminary expenses of organization, amounting to 

 rather more than the 25 per cent installment due upon stock subscribed. 

 This has been increased to $5,000. It was our duty, under our instructions 

 from the convention, to immediately proceed to promote local organiza- 

 tions in all parts of the State, covering all branches of the fruit industry, 

 together with many other duties, all involving considerable expense. 



None of the Directors were willing to conduct an Exchange except on 

 a sound financial basis, and hence, instead of employing assistance to 

 push organization in all branches of the industry, we have been com- 

 pelled to confine our efforts to what could be accomplished by the 

 manager, with such occasional assistance as individual Directors could 

 give without abandoning their own business. 



In spite of these difficulties, we are proud of what we have accom- 

 plished in organizing the dried fruit and raisin industry, collecting and 

 distributing information, compiling statistics for future use, promoting 

 f. o. b. sales, and adopting a uniform system of grading, and in the 

 general preliminary business education of growers which must precede 

 any effective organization. Local associations have been formed in all 

 parts of the State, and we have already many calls for assistance in 

 forming new local societies for next year. 



The only possible way in which a State Exchange can be established 

 and supported — unless by donations — is by the sale of stock and using 

 its proceeds for expenses during the period of organization; after organi- 

 zation, the support to come by a uniform charge on the fruit benefited. 



