TWENTY-FOURTH ANNUAL FRUIT-GROWERS ' CONVENTION. 51 



hundred cars, who do their own packing under whatever regulations 

 suit them. All we want is that when the fruit is properly packed that 

 they turn it over for sale. When the fruit is sold by our agent in the 

 East the money is remitted directly to the exchange making the ship- 

 ment. 



QUESTION. Your inspector determines the quality and packing? 



Mr. NAFTZGER. The trade does that more than any one else. 



QUESTION. Have you a system of inspection? 



Mr. NAFTZGER. No, sir. We started that way, but we find enough 

 friendly rivalry among the exchanges to try and keep their grade up 

 and compete in the markets for the top prices. 



QUESTION. Have you any advantages in the freight rates? 



Mr. NAFTZGER. We sell the fruit for just as much as we can. 



QUESTION. Do you have any control over the subordinate 

 exchanges? 



Mr. NAFTZGER. Only the marketing of the fruit. 

 QUESTION. What do you do, then? 



Mr. NAFTZGER. We have control over the selling agency. The 

 Eastern agencies are appointed by us and are entirely under our 

 control. The goods are all billed to our order. 



QUESTION. Do the other subordinate exchanges have capital? 



Mr. NAFTZGER. No, sir; not as a rule. They own their own 

 packing-houses. 



QUESTION. What if an individual put part of his crop in your 

 charge and part elsewhere? 



Mr. NAFTZGER. We do not permit of that. He goes the whole 

 hog or none. 



QUESTION. Who fixes the prices — your central association? 

 Mr. NAFTZGER. All our goods are sold delivered at the other 

 end of the line on the conditions of the market as we find them. 

 QUESTION. Do you ever employ outside packers? 

 Mr. NAFTZGER. No, sir. 



QUESTION. What is your rate of commission? 



Mr. NAFTZGER. Just exactly what it costs to do the business. 



QUESTION. What does it cost? 



Mr. NAFTZGER. An average of about three per cent of the gross 

 selling price. Covering all charges from the time the goods are loaded 

 for shipment. We have nothing to do with the packing charge or any- 

 thing pertaining to it. From the time the goods are ready for shipment 

 our average cost has been about three per cent on the gross sale. 



QUESTION. Half of the cost on this end and half on the other end 

 of the line? 



Mr. NAFTZGER. More than half at the other end of the line, 



