COOPERATIVE CITRUS-FRUIT MARKETING AGENCY. 37 
ber the representatives elect the 17 directors. As a general rule one 
director is elected from each principal lemon-producing section, of 
which there are 15. At present, the two additional directors are the 
lemon sales agent of the exchange and a second director from the 
Corona district. 
The products of the plant are citric acid, citrate of lime, and lemon 
oil. From 35 to 50 pounds of citric acid and 1 to 2 pounds of lemon 
oil are secured from each ton of cull lemons. During the first six 
years of operation the company sold more than $1,000,000 worth of 
these products, returning to the local associations about one-third 
of the sales value, besides paying the freight on culls from the pack- 
ing house to the plant. The manager estimates that the plant could 
furnish one-third the citric acid used in the United States if oper- 
ated continuously to capacity. 
Disposal of cull lemons used to be a difficult problem for the local 
associations, and entailed an average expense of about $1.50 a ton 
for hauling to the dump. The by-products company has relieved 
the local associations of all expense beyond loading in cars, and has 
returned to the locals between two and three times the entire invest- 
ment in the plant. 
Payments to shippers for lemons are based on the amount of citric 
acid extracted per ton. The stock of the company at the present 
time is on a revolving-fund basis. Continuing assessments of 2 cents 
per box are paid by the members of the company of which, until all 
capital stock is paid in, 1 cent is invested in the stock of the com- 
pany and 1 cent used to retire the oldest stock. 
ECONOMIC SERVICES OF THE EXCHANGE. 
The California Fruit Growers Exchange now markets more than 
70 per cent of the citrus product of the State. The contribution 
which it has made to the development of the industry is correspond- 
ingly large. Although this contribution can not be measured exactly, 
its importance is indicated by a consideration of some of the definite 
economic services the exchange has performed. 
REDUCTION IN PACKING AND MARKETING COSTS. 
One of the immediate benefits derived from the organization of the 
local associations was a material reduction in the cost of packing 
oranges. Prior to the organization of the exchange, packing charges 
per box ranged from 35 to 55 cents with 40 to 45 cents the common 
charge. The associations were able to perform the same, or a supe- 
rior service, for 24 to 30 cents per box. (o) In 1911, Woodford, {10) 
comparing conditions in the citrus industry before the organization 
of the exchange and at that time, said: 
Then the cost of packing a box of oranges and putting i\ upon the car was between 
40 and 50 cents. Now the same service, better done, costs on the average 30 cents. 
An average saving of at least 10 cents per box in packing expense 
is indicated. Present-day costs, of course, are much higher than 
those of 1893 or 1911. In 1921, the average packing expense for 
oranges w r as 75 cents, and the five-year average il'.ilz-iM) was 55 
cents. 
