February, 1909.] 13 



the growers, and on September 1st, 1904, 

 the Exchange resumed the sale of the 

 fruit it controlled, independently of any 

 other factor. 



"On resuming its marketing operations, 

 the Exchange" passed the following re- 

 solution as a basis on which to operate : — 



' On May 20th we issued a circular, 

 advising all growers of the dissolution 

 of the California Fruit Agency, to take 

 effect September 1st next. 



'Upon the formation of the California 

 Fruit Agency, every effort was made to 

 pell the fruit f. o. b, California. All 

 agents were instructed to push this 

 policy, and men were employed as 

 salesmen iu the Sales Department of 

 the Agency who possessed ability and 

 much experience in that line, and who 

 have been in the employ of the leading 

 packers, as their salesmen for many 

 years. 



'Immediately after the California Fruit 

 Agency was organized, April 1st, 1903, 

 f,o.b. orders for fruit (usual terms of 

 inspection, etc.) were only received in 

 limited numbers, and not sufficient to 

 move a reasonable percentage of the 

 crop— although climatic conditions in 

 California were most favourable to 

 restrict shipments. It soon became 

 necessary, in order to move the crop, to 

 ship, and attempt to make sales in 

 transit, or sell the fruit delivered at 

 market value at the point and time of 

 delivery. 



'Our crops ate now so large that all 

 markets should be constantly supplied 

 with their full quota of fruit in order to 

 consume the output. This distribution 

 can be better accomplished by those 

 most directly interested,— the growers 

 themselves. The citrus-fruit-grower is 

 no longer independent of his neighbour 

 as to marketing his crop, but each one 

 is dependent upon the other, especially 

 in so far as systematic distribution is 

 concerned. 



'The Southern California Fruit Ex- 

 change is composed only of growers 

 who recognise all legitimate dealers in 

 the trade, and who are organised for 

 the purpose of disposing of their pro- 

 ducts iu all markets of the country 

 upon the most advantageous terms, and 

 to secure distribution to the trade at 

 the least expense compatible with the 

 best service, securing to the consumer 

 the fruit at reasonable prices, and to the 

 grower the best average returns, 



' When the Southern California Fruit 

 Exchange resumes its selling operations 

 on September 1st next, in the absenc- 

 of other instructions from, or a change 

 of policy being inaugurated by the 



i Edible Products! 



growers themselves through their re- 

 presentatives on its Board of Directors, 

 the Management will endeavour to sell 

 the fruit in such a manner as will bring 

 the most money for the product, confin- 

 ing itself neither to cash sales in Cali- 

 fornia, f.o.b. sales California (subject 

 to inspection, draft attached to biil of 

 lading), or sales delivered, nor to any 

 other one method. Its agents and repre- 

 sentatives will be instructed to secure 

 all orders possible from fruit, allowing 

 the customer to take his preference as 

 to whether he wants these orders to 

 be for spot cash, f.o.b., usual terms, 

 or delivered, subject of course to the 

 confirmation of the Exchange or Asso- 

 ciation shipping. 



'Growers or Associations of growers 

 not connected with the Southern Califor- 

 nia Fruit Exchange have the opportu- 

 nity now to associate or to form new 

 associations according to their pre- 

 ference, ro add to conditions existing in 

 their localities. 



'Believing that in co-operation with 

 each other, the best net results to the 

 growers can be obtained, we appeal to all 

 present Exchange members and others 

 interested in maintaining values of 

 orchard property to put forth every 

 effort to secure as large a membership 

 as possible in our associations and ex- 

 changes.' 



"On March 27, 1905, the California 

 Fruit Growers' Exchange was incor- 

 porated, and on September 1st following 

 succeeded to the business of the Southern 

 California Fruit Exchange, This change 

 in name was deemed advisable in 

 order that the market organisation of 

 itself might in name, as well as in fact, 

 become general throughout the State 

 rather than remain local to Southern 

 California. 



"The Exchange was founded upon the 

 theory that every member was entitled 

 to furnish his pro rata of the fruit for 

 shipment through his association, and 

 every association to its pro rata of the 

 various markets of the country. This 

 theory reduced to practice gives every 

 grower his fair share, and the average 

 price of all markets throughout the 



"Another cardinal provision of the 

 plan was that all fruit should be mar- 

 keted on a level basis of actual cost, 

 with all books and accounts open for 

 inspection at the pleasure of the mem- 

 bers. These broad principles of full co- 

 operation constitute the basis of the 

 Exchange movement. 



" The Exchange system is simple, 

 but quite democratic. The local associ- 



