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Exchange can itself earn money, and thereby reduce the charge upon 

 the local associations. 



I think I should add that I have intentionally omitted stating one or 

 two important uses for a State Exchange, for the reason that I think it 

 full time that we stop stating in advance all that we propose. The best 

 time for business men to state their plans is after they have executed 

 them. It is necessary in such a case as this to indicate certain lines of 

 operation, but I prefer to rest the case by saying that the need of a cen- 

 tral agency is plain, and that when we have once created a powerful 

 central agency we can do what we please with it. 



II. The proper work of the State Exchange in reforming the fresh 

 fruit trade. 



I wish all our fresh fruit shipments could be made through one agency. 

 At present they cannot, and that is the end of it with those who under- 

 stand the situation. To accomplish this there must first be a general 

 agreement, and next the power to carry out such an agreement. Neither 

 the agreement nor the power to carry it out is now possible. There are 

 now many firms engaged in the business who are here to stay for the 

 present, and perhaps always. Before the next shipping season begins 

 advances on crops will have been made by those who will by means of 

 those advances control those crops in sufficient amount to render any 

 reform whatever impossible unless that fact be taken into account. If 

 to the amount secured by advances we add the amounts which these 

 firms will secure through friendship, trade relations, and active can- 

 vassing and purchase we may understand something of the element not 

 cooperative, with which we have to deal. 



The successful concentration of the orange interest will be cited in 

 opposition to this. The orange interest, however, is compact, being 

 arranged along irrigation systems, within a comparatively limited area; 

 the deciduous fresh fruit interests are scattered over the entire State. In 

 my opinion — and I believe my opportunities for judging are as good as 

 those of any other grower — no such organization of deciduous fruit 

 growers as exists among the orange men . is possible for 1895, nor any 

 effective organization which does not recognize a member of the large 

 shipping houses as the largest fruit owners of the State, and deal with 

 them on that basis; The proper function of a commission house is that 

 of agent for the owner, bound to do his bidding so far as he may choose 

 to direct; but when a commission house has made advances the house 

 becomes the owner, and will handle the goods as it deems best; it will 

 doubtless get what it can for the grower, but will take, in so doing, no 

 risks that can be avoided of failure to recover the advance. That is 

 the way I would do business, and I am very sure that is the way they 

 do business. All our large shipping houses have Eastern connections 

 to whom it is an object to them to consign business; I suppose them to 

 be the principal owners of the larger auction houses, and to have large 

 interests in existing refrigerator lines. It has been generally believed 

 that in former years goods have been routed very largely with reference 

 to supplying business to those connections. I once suggested to the 

 manager of one of the largest shipping houses that growers wished their 

 fruit shipments consigned with reference to a fair division according to 

 the known capacity of the several markets, rather than with reference 

 to placing business in particular hands; and the reply was exceedingly 



