COOPERATIVE CITRUS-FRUIT MARKETING AGENCY. 31 
unduly large, and to obtain a proper profit by greater turnover 
and a large volume. By reducing the price to the ultimate consumer 
in this way, a larger market is created for the grower and the trade. 
Most of the statistical studies of the industry as to production costs 
and similar factors have been undertaken by the California Citrus 
League, an organization which is composed of practically all of the 
California citrus shippers, including the exchange, and which handles 
tariff matters, freight rates, and other general problems common to 
all shippers. 
SUPPLY AND BY-PRODUCTS ORGANIZATIONS. 
FRUIT GROWERS SUPPLY CO. 
The Fruit Growers Supply Co. is owned and operated by the 
associations and other shippers in the exchange system. In the 
last analysis it is owned by the growers who are members of the 
various associations. (See fig. 7.) However, in all instances the stock 
of the supply company is issued to the association, individual shipper, 
or packing company and the transactions of the supply company 
are with the local units. While the capital stock is issued to the 
associations, the individual growers' pro rata ownership in that stock 
is reflected in most cases through the associations' books to the 
individual grower. 
The supply company is operated by the affiliated growers for the 
purpose of securing essential packing-house and orchard supplies. 
The supply company endeavors to secure supplies of the requisite 
quality at fair prices and with the assurance of delivery when needed. 
Although quality, price, and time of delivery are important factors 
in all of its purchasing operations, the primary need is to secure an 
adequate quantity of supplies. Failure to obtain box material, 
nails, or other essentials would mean a disastrous loss to the growers 
of citrus fruit. It was primarily to avoid the possibility of such 
loss that the Fruit Growers' Supply Co. was organized. 
The supply company's capital stock is subscribed through the 
carrying into effect of a contract between the individual associations 
and the supply company, whereby the associations instruct the 
California Fruit Growers Exchange to deduct 4 cents per box from 
the proceeds of the sale of their fruit, 2 cents to be used for the 
purchase of new stock, and the remaining 2 cents to be used to 
purchase the oldest outstanding stock. These purchases are made 
three times each year. Consequently adjustment is frequently 
taking place whereby associations that are increasing their shipments 
are buying more stock, and they are making these purchases from 
shippers whose shipments are stationary or decreasing. The object 
is to keep stock ownership in the hands of those who use the exchange 
as a marketing organization and to adjust such ownership in pro- 
portion to that use. 
As the company has grown and as its timber holdings have 
increased, neccessity has arisen for increasing the capital stock by 
successive steps from $500,000 to its present capitalization of 
$6,000,000. At the present time $4,478,130 has been subscribed and 
paid for; and the subscriptions, by the terms of the revolving fund 
agreement, will continue at the rate of 2 cents per box until the full 
amount of $6,000,000 has been subscribed whereupon the total 
