36 BULLETIN 1237, U. S. DEPARTMENT OF AGRICULTURE. 
experimentally to dairy cattle with seemingly good results. Present 
indications are that cull oranges will be processed in two ways, both 
of which will consume all of the oranges and leave nothing to be 
dumped. One process will yield oil, juice or vinegar, pectin, and 
dairy feed. The other will yield peel, juice or vinegar, pectin, and 
dairy feed. 
The history of orange by-product manufacture by the exchange 
has been rather discouraging to the stockholders of the company. The 
reasons for the failure of the first company are clear-cut, and it 
would seem that its mistakes have been avoided by the new com- 
pany. However, the venture is strictly in the experimental stage 
and its success will depend upon (1) the ability of the company to 
work out the various processes that are still in the experimental 
stage and (2) its ability to manufacture these products at a cost 
which will enable it to place a reasonable value on cull oranges. 
THE EXCHANGE LEMON PRODUCTS CO. 
The Exchange Lemon Products Co. was organized in 1915 by 
members of lemon associations affiliated with the exchange for the 
purpose of creating an outlet for cull lemons. According to figures 
supplied by the manager of this company, from 3 to 20 per cent of 
the lemons harvested each year are culls which are not suitable for 
shipment. In the aggregate this amounts to from 500 to 3,000 
cars annually, and represents an appreciable loss to the producers. 
In addition to providing an outlet for cull fruit, the organizers of the 
Exchange Lemon Products Co. also had in mind the probability that 
the increase in the production of lemons would necessitate more 
careful grading to enable the California industry to move success- 
fully in competition with foreign lemons, and that the quantity of 
waste fruit would be increased in a larger proportion than the increase 
in the crop. 
Not all lemon associations are stockholders of the Exchange 
Lemon Products Co. The lemon associations in San Diego County, 
for example, have an outlet for cull lemons at a commercial by- 
products plant in National City which has been in operation for a 
number of years. The associations, uniting to form the Exchange 
Lemon Products Co., agreed to assess themselves 1 cent per box of 
lemons shipped to create a capital stock fund. In six years the fund 
amounted to approximately $200,000. All capital stock of the com- 
pany is owned by the associations subscribing to this agreement, and 
only the lemons of such members are handled. The stock does not 
pay dividends and is therefore of no value to an association except 
as it makes use of the facilities of the company. 
An apparent inequality in stock ownership exists, inasmuch as the 
investment of each association is based on its total shipments, 
whereas Che value of the company's facilities to the association 
depends entirely upon the quantity of culls delivered. However, 
whatever inequalities in this respect exist during a particular season 
will tend toward equalization over a period of years. 
The company is controlled by a hoard of 17 directors elected by 
the stockholders. Bach member association elects a representative 
bo attend the annual stockholders' meeting^ and t he proxy of the 
association is issued to this representative. From among their num.- 
