24 BUIaLETIN 1237, U. S. DEPARTMENT OF AGRICULTURE. 
MARKETING FUNCTIONS. 
The district exchange is the sales agent of its members. In his 
capacity as sales agent for the shippers in his district, the district 
exchange manager apportions all orders from buyers that do not 
specify the pack of a particular shipper. He also gives billing and 
routing instructions for cars that are not shipped on order. The 
district manager is in constant touch with the sales and traffic depart- 
ments of the exchange; and, acting on market information received 
through this source and his knowledge of the shipments from his 
district, he places a price upon the various grades of fruit in the 
several shipments from his district. If, for any reason, the shipment 
can not be sold at the price asked, neither the agent in the market 
nor the sales agent in the central office of the exchange is authorized 
to accept a lower price. The best offer received must be referred to 
the district exchange; and, usually after consultation with the asso- 
ciation manager, the offer is either accepted or instructions are given 
by the district exchange to divert the car to another market. 
The sales departments of the exchange deal directly with the 20 
district-exchange managers. They are enabled, accordingly, to 
receive information regarding shipments, and to distribute market 
information more expeditiously than would be the case if they were 
obliged to keep in touch with all the 192 local units. As the district- 
exchange managers are in close touch with conditions in their district 
they are able to give the sales departments concise information 
regarding the quality and condition of the fruit shipped by their 
members. 
The district exchanges withhold all charges made against the fruit 
for marketing or other purpose. A fixed "retain" per box is deter- 
mined at the beginning of each season. This sum includes the 
estimated costs of the district exchange, the cost of maintaining the 
central exchange, including all branch offices, a fixed advertising 
charge, and the established assessment for stock in the Fruit Growers 
Supply Co. If a shipper 16 is a member of either the orange or lemon 
by-product companies the amount assessed for the purchase of the 
stock of these companies is also withheld from his returns. Periodi- 
cally the district exchange distributes to the various central service 
organizations, the amount withheld for each, holding only its own 
assessment. At the end of the fiscal year the cost of operating the 
district exchange and the central exchange is determined, and any 
surplus is returned to the shippers in proportion to the amount con- 
tributed by each. 
SERVICE ACTIVITIES. 
In general, the service activities of the district exchanges are 
limited. The manager gives assistance to the associations in matters 
of organization and membership. Many associations have no desire 
in increase the number of their members because they think they 
already have all the fruit the packing-house facilities will care for 
properly. The district-exchange manager, however, takes a some- 
what dlfferenl attitude. Every additional car of fruit enables his 
office to operate :it a lower cost per box and adds to the efficiency of 
'•■ Shipper" rrfrr in .ii c is< i to an en lociation, Individual shipper, or packing company. 
