Edible Products. 



140 



[February, 1909. 



ation consists of a number of growers 

 contiguously situtated, who unite them- 

 selves for the purpose of preparing their 

 f rui€ for market on a co-operative basis. 

 They establish their own brands, make 

 such rules as they may agree upon for 

 grading, packing, and pooling their 

 fruit. Usually these associations own 

 thoroughly equipped packing-houses. 



"All members are given a like pri- 

 vilege to pick and deliver fruit to the 

 packing-house, where it is weighed in 

 and properly receipted for. Every 

 grower's fruit is separated into different 

 grades, according to quality, and usually 

 thereafter it goes into the common pool, 

 and in due course takes its percentage 

 of the returns according to grade. 



" Any given brand is the exclusive 

 property of the Association using it, 

 and the fruit under this brand is always 

 packed in the same locality, and there- 

 fore of uniform quality. This is of great 

 advantage in marketing, as the trade 

 soon learns that the pack is reliable. 



"There are more than eighty associ- 

 ations covering every citrus fruit district 

 in California, and packing nearly two 

 hundred reliable and guaranteed brands 

 of oranges and lemons. 



"The several associations in a locality 

 unite to form the local Exchange, which 

 serves as a medium, and to a certain 

 extent as a buffer between the associ- 

 ations and the general Exchange. 



"The California Fruit-Growers' Ex- 

 change, referred to above as the General 

 Exchange, consists of thirteen stock- 

 holders, all directors, and all selected 

 by the local Exchanges. In other words, 

 the several local Exchanges designate 

 one man each from their membership as 

 their representative, and he is elected a 

 director of the California Fruit Growers' 

 Exchange. By this method the policy- 

 making and governing power of the 

 organisation remains in the hands of 

 the local Exchanges. 



"From top to bottom the organisa- 

 tion is planned, dominated, and in 

 general detail controlled absolutely by 

 the fruit-growers, and for the common 

 good of all members. No corporation 

 or individual reaps from it either 

 dividends or private gain. 



" So far we have dealt almost exclu- 

 sively with the organisation of the Ex- 

 change, its co-operative aspects, and 

 general policy at home. Equally impor- 

 tant is its organisation in the markets. 



" Seeking to free itself from the shift- 

 ing influences of speculative trading, 

 by taking the business out of the hands 

 of middlemen at home, the Exchange 

 found it quite as important to maintain 

 the control of its own affairs in the 



markets, It never contemplated the 

 opening of either retail or jobbing 

 houses, but to put the fruit into the 

 hands of the legitimate dealers first 

 hand. For this purpose the Exchange 

 established a system of exclusive 

 agencies in all the principal cities of the 

 country, employing as agents active, 

 capable young men of experience in the 

 fruit business. Most of these agents are 

 salaried, and have no other business of 

 any kind to engage their attention, and 

 none of the Exchange representatives 

 handle any other citrus fruits. These 

 agents sell to smaller cities contiguous 

 to their headquarters, or in the territory 

 covered by their districts. 



"Over all these agencies are two 

 general or travelling agents, with 

 authority to supervise and check up the 

 various offices. These general agents 

 maintain in their offices at Chicago and 

 Omaha a complete bureau of informa- 

 tion, through which all agents receive 

 every day detailed information as to 

 sales of Exchange fruit in other markets 

 the previous day. Possessing this data 

 the sellingagent cannot be taken advant- 

 age of as to prices. If any agent finds 

 his market sluggish and is unable to sell 

 at the average prices prevailing else- 

 where, he' promptly advices the head 

 office in Los Angeles, and sufficient fruit 

 is diverted from his market to relieve 

 it and restore prices to normal level. 

 In actual practice approximately 40 per 

 cent, of all the fruits shipped by the 

 Exchange is sold by public auction at 

 point of consumption, and of the remain- 

 ing 60 per cent, the greater part is sold 

 at private sale at a price agreed upon 

 between the seller and purchaser at 

 point of arrival on market conditions 

 as they prevail at that time. Through 

 these agencies of its own the Exchange 

 is able to get and transmit to its 

 members the most trustworthy informa- 

 tion regarding market conditions, visible 

 supplies, &c. This system affords a 

 maximum of good service at a miuimum 

 cost. The volume of the business is so 

 large that 'a most thorough equipment is 

 maintained at a much less cost to growers 

 than any other selling agency can offer. 



"During the fourteen years of co- 

 operation in the marketing of citrus 

 fruits under the Exchange system, the 

 output of the State has iucreased from 

 4,100 cars in 1892-3 to 31,791 cars (including 

 Northern California shipments) during 

 the season of 1901-5, with a prospect of a 

 still further increase in the volume of 

 shipments in the very near future. 



"Marketing the fruit for its growers 

 at actual cost, the Exchange has been 

 able to bring about a great reduction in 

 packing and selling charges, with the 



