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they can afford the expense of this, and not one has ever done it. It is, 

 in fact, absurd for a small or moderate- sized Exchange to appoint so 

 many brokers, when it could only expect to give business to a very few, 

 and yet it is desirable for every Exchange to have direct access to every 

 market. I think a State Exchange should appoint brokers for the 

 benefit of all at the common expense, and then let each local concern 

 push its own sales through those brokers, selling for cash at home if any 

 speculative buyer is found to do better than the market. 



All recognize the importance of "information," but comparatively 

 few understand the exact items of information necessary, or how to get 

 them with accuracy — accuracy, I need not say, being the essential ele- 

 ment — or the necessary cost of so getting them.' This information has 

 never yet been got for the growers, who in spite of their Exchanges have 

 thus far been way behind the trade in this matter. The gathering of 

 information was one of the prime objects of forming the State Exchange. 

 It has never gathered it to any extent worth mentioning; not because 

 the management did not know what was wanted, and how to get it, but 

 because they did not have the money to pay for getting it. The trade 

 has spent its money and got it; the growers have refused to spend the 

 money and have gone without it. The State Exchange is unquestion- 

 ably the most effective and economical means that can be employed by 

 growers for this purpose, but it must have the means to work with. 



Opening and extending markets by advertising, by expositions, by 

 ascertaining the special demands of different markets, and by all other 

 means is preeminently the work of a State Exchange. 



The matter of grading dried fruits is an essential element in any 

 effective movement for extending our trade. It can only be settled by 

 agreement among the owners of the fruit to pack in a certain way, and 

 under certain definite terms. The Exchanges now organized control 

 fruit enough to practically control the situation; whatever they agree 

 upon and excute, the rest will come into. They need a central agency 

 through which to keep in communication with each other during the 

 first years of putting the system in operation, and, perhaps, to oversee 

 an inspection. The State Exchange is an available agency for that 

 purpose. 



The cost of maintaining a State Exchange will be the salaries of two 

 or three capable men, one at the East and two here, with the necessary 

 clerical assistance, which will not be large, rent, printing, telegrams, 

 postage, and stationery. It is absolutely necessary that there should be 

 one good man constantly in the office, and one at liberty to go and come. 

 This must be met by an adequate and annual income from some source. 

 Any such income should be available from and after the first of 

 July next. From the beginning of its organization until that time it 

 must use its capital stock for support. This capital stock is being con- 

 tributed by individuals who are entitled to receive interest thereon, 

 which is an additional item of current expense. From the income there 

 must also be annually set aside a sum to be paid back into capital 

 stock the sum used in organizing, so that should the corporation ever 

 wish to dissolve, the sum paid in by each individual could be returned 

 to him intact. I estimate that for the first year or two a charge of 1 

 per cent on the output of the local organizations now existing would be 

 ample for these purposes, and that thereafter the percentage would 

 rapidly grow less. There are some legitimate ways whereby a State 



