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This was the manner in which the California Fruit Union was started. 

 The individuals who subscribed for the stock do not give the money; 

 they lend it by investing it in the stock of the corporation. The income 

 of the Exchange must therefore be made large enough to allow a sum 

 to be annually set aside to pay back into capital stock whatever sums 

 are used in organization. 



The theory of the State Exchange has always been that during the 

 period of active organization it would be the leader, and thereafter the 

 servant of the local Exchanges. The result of the first year's work has 

 been the organization of Exchanges which will next year handle an 

 amount of fruit large enough, when joined to the output of those older 

 than the State Exchange, to support the State Exchange by a uniform 

 charge and not feel it. We have called a convention of authorized 

 delegates of the local Exchanges, to meet at the time of our annual 

 stockholders' meeting, and that body, when convened, will practically 

 determine the immediate future of cooperation of this State. 



This statement contains in outline the history of our operations to 

 this date. The details will, of course, appear in our annual reports to 

 our stockholders' meeting in January. Something of our views as to 

 future action will appear from other papers to be read later. 



Having made this statement to one of the bodies responsible for our 

 existence, and the present representative of the interest of which we are 

 servants, we ask this convention, if upon consideration it finds that we 

 have done our duty by the interests we have tried to serve, to strengthen 

 our hands by such proper resolutions of approval as may be expected 

 to have weight with the public. If, unfortunately, you shall deem 

 otherwise, it must never be forgotten that the important question is not 

 whether a fortunate selection of instruments was made where withal to 

 "begin this work, but in what other ways, and by what better hands, 

 shall this great work be carried to completion; the present Directors of 

 the Exchange can direct the way but a few weeks longer; the fruit 

 growers who selected them have to the end of time thereafter to perfect 

 their work. It is neither strange nor serious that the first Board of 

 Directors selected to carry on a new work should fail to bring all things 

 right in one year, but it will be very strange and serious indeed if the 

 great body of fruit growers in State convention assembled should be 

 swerved from its course, after due deliberation adopted, or fail to persist 

 in compelling its will to be executed by one agency, if not by another. 

 None of those connected with the State Exchange desire, and some will 

 be unable, to be as active as they have hitherto been in this cause, but 

 every one of them will be found firmly supporting and assisting. The 

 lines of our advance have been carefully laid down; upon the more 

 important questions of detail, even, there is no difference of opinion 

 among those whose means of observation qualifies them to judge what is 

 possible. The one thing which we must never forget, and without 

 which no success on any line will be possible, is that we must first per- 

 fect and solidify our organization, and then, with our organization, we 

 can do what we please. 



