26 BULLETIN 1237, IT. S. DEPARTMENT OF AGRICULTURE. 
trict exchanges and is paid by them to the exchange at specified 
periods. Direct-contract shippers pay their marketing charge 
directly to the exchange. At the end of the fiscal year, any sum 
remaining after the expenses of the exchange are paid is returned to 
the district exchanges or the direct-contract shippers. 
The directors of the exchange elect the officers of the exchange and 
a general manager. The exchange directors meet weekly in the Los 
Angeles office. The directors' meetings are attended regularly by a 
considerable number of growers, association managers, and others 
interested in the citrus industry. Executive sessions are an exception. 
The fact that the meetings of the exchange directors are open to 
everyone connected with the industry has created a very favorable 
impression throughout the industry, and the sentiment which it 
has inspired is no doubt a considerable factor in the strength of 
the organization. The business of the meeting consists, as a rule, 
of the consideration of routine matters pertaining to the operation of 
the exchange, of special business brought to the consideration of the 
directors by the general manager, and reports from heads of 
departments. The lemon and orange sales agents always give reports 
on sales and market conditions, the number of cars en route to market, 
the number shipped the previous weeks, estimated shipments for the 
current week, and similar matters of interest. 
The general manager is responsible for the policies of the exchange 
and supervises the work of the various departments. Although any 
important change in policy is subject to approval by the board of 
directors, it is the duty of the manager to initiate such policies and 
make the necessary recommendations to the board. The duties and 
powers of the general manager, therefore, do not differ in their scope 
and authority from that of the manager of any representative indus- 
trial corporation. 
The cost per box for all the central-exchange activities averaged 
5 to 7 cents from 1896 to 1913. Expenses have gradually increased 
since then as the exchange has rendered additional services and spent 
more in advertising. In 1920 the net expense per packed box was 
5.4 cents for sales service and 3.3 cents additional for advertising; in 
1921, 5.8 cents for sales service and 4 cents for advertising; and in 
1922, 7.8 cents for sales service and 4.2 cents for advertising. The 
high figure in 1922 was due to the small volume handled. The total 
annual expenses of the exchange were between $500,000 and $750,000 
annually from 1910 to 1914. Between 1920 and 1922 total expenses 
for each 12-month period increased to $1,500,000 or more. Adver- 
tising and the maintenance of the selling organization each accounted 
for anout 40 per cent of the total expenses. The exchange assess- 
ment is reduced nearly 1 cent a box by an arrangement with the 
California Fruit Exchange, a cooperative deciduous-fruit selling organ- 
ization, allowing the joint use oi exchange facilities on the markets 
during the deciduous fruit season. During this period shipments of 
citrus fruit are comparatively small. 
THE ORANGE AND LEMON SALES DEPARTMENTS. 
The orange sales department handles the sale of oranges, grape- 
fruit, and tangerines. This department is in close touch at all times 
with the managers of the district exchanges, with the direct contract 
