COOPERATIVE CTTRU&-FRUIT MARKETING AGENCY. 3c 
that ship oranges through the California Fruit Growers Exchange 
were stockholders in this company. Exchange Orange Products Co. 
suspended operations in June, 1920, with a net loss to its stockholders 
of approximately SI 75.000. It was reorganized and reincorporated 
the following year under the name, "The Exchange Orange Products 
Co." The only change in the title of the organization was the addi- 
tion of the word "The" to the corporate title. 
The first company failed primarily because it attempted to salvage 
oranges by the manufacture of marmalade. Only 15 to 20 per cent 
of the value of the finished product was derived from cull oranges. 
The remainder was made up of glass, sugar, and labels. The costs of 
operation, therefore, were very nigh in comparison with the amount 
of cull material that was actually salvaged. Moreover, the marmalade 
manufactured was not uniform in quality, because of an attempt to 
manufacture large quantities by an expansion of small-scale practices. 
Each batch of marmalade differed in a greater or less degree from 
others. Considerable money was spent in an advertising campaign, 
and a large volume came on the market, but without the development 
of proper marketing connections to dispose of such quantities, and the 
lack of uniformity of the product greatly injured its sale. In spite 
of these handicaps, the organization persisted through the war period 
and for about a year and a half thereafter, but when the general slump 
of 1920 came it was forced to suspend operations. 
The new companv was organized with $150,000 authorized capi- 
tal, of which $107,000 had been paid in September, 1922. Not all 
orange associations of the exchange became stockholders in the new 
company. Many had suffered such severe losses in the old company 
that they were not inclined to go further with the venture. The 
associations purchasing the shares of the new company contributed 
to the working capital on the basis of 3 cents per box of oranges 
shipped during the season of 1918-19, and agreed to contribute 1 
cent per box on all shipments made thereafter to the capital stock 
of the company. The directors of The Exchange Orange Products 
Co. are elected by representatives of each member association at the 
annual stockholders' meeting. One director is elected from approx- 
imately each district represented by a district exchange. 
The new company took over the plant of the old organization, 
which was equipped for the manufacture of marmalade. The first 
year was devoted almost entirely to the installation of new machin- 
ery, which had to be designed in part for the uses of the company, 
and to the instruction of the help in the processes required to manu- 
facture various products. 
At the present time the company is selling approximately 20 per 
cent of the orange oil used in the United States. This product was 
not obtained in a satisfactory form until March, 1922. Both dis- 
tilled and expressed oil are secured. The company is undertaking 
the manufacture of orange vinegar, and, experimentally, small quan- 
tities of orange juice, which is concentrated in a high vacuum. 
Dehydrated orange peel is manufactured, as is also orange peel in 
brine, which is used by candy manufac tu i cms to make candied orange 
peel. Experimentalwork relative to the extraction of pectin from 
oranges has been carried on. 
Out of every 50 tons of cull oranges, about 35 tons of refuse remains, 
which has had to be hauled to the dump. This refuse has been fed 
